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
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