Vat and st calculation
This query is : Resolved
26 January 2014
hello ....
my client is deal with it software
we got a invoice from lucknow to our office noida
his invoice tax calculation is wrong
exa. base value + st then vat charged
under this situation we are unable to claim cenvat on st.
plz suggest
26 January 2014
Mr JP Singh,
According to me, the invoice is wrong,because,as per sec66 of ST Act service tax can be levied on the sevices provided and computer software is not a service,but goods,as per clause 64 of sec65(definitions)of the same Act. Moreover,soft ware is chargeable @5% under entry no 1 of schIV of UP VAT Act.On any transaction only one of the taxes i.e.either VAT or ST can be levied. Here if it a sale of computer software only VAT is to be levied,or if it is bill on software servicing then only ST is leviable. No tax on a tax can be charged.So, you can ask your supplier to amend the invoice accordingly
According to me, the invoice is wrong,because,as per sec66 of ST Act service tax can be levied on the sevices provided and computer software is not a service,but goods,as per clause 64 of sec65(definitions)of the same Act. Moreover,soft ware is chargeable @5% under entry no 1 of schIV of UP VAT Act.On any transaction only one of the taxes i.e.either VAT or ST can be levied. Here if it a sale of computer software only VAT is to be levied,or if it is bill on software servicing then only ST is leviable. No tax on a tax can be charged.So, you can ask your supplier to amend the invoice accordingly
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- Type of Capital Gain
- Booth for sales promotion
- Exiting partner in partnership firm in gst portal
- Regarding ITR filing with more value than showing in AIS/TIS
- F & O PROFIT REPORTING FOR AY 2026-27
- ITR-Capital Gain
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
