How determine Taxable Value for VAT applicability on software sales. Whether VAT need to be calculated on Basic Value + Service Tax or only on Basic. For example:
Case 1 – Basic Software value – Rs.1,000/- ST @ 12.36% - Rs. 124/- VAT @ 5% - Rs. 50/- Total Invoice - - Rs.1174/- Or
Case 2 Basic Software Value – Rs.1,000/- ST @12.36% Rs.124/- Gross Total Rs.1124/- VAT @ 5% on GT Rs.56/- Total Invoice Value - Rs.1180/-
Please refer both the case and please suggest, which one need to consider (Please help me with TNVAT Act reference)
CAclubindia
