Vat calculation on job work
This query is : Resolved
10 March 2012
Dear Sir/Madam,
Our Scope of Supply of Control Panel is Rs.5,00,000 & have received material to be fitted in Control panel from customer worth Rs.5,00,000.
We will bill the customer with Rs.10,00,000 with Excise duty of Rs.1,03,000. But for VAT calculation the free cost material worth Rs.5,00,000 must be removed as stated by customer and to be calculated on Rs.6,03,000 (ie., 11,03,000 - FOC material Rs.5,00,000 = Rs.6,03,000).
Is this method acceptable. If so under what rule / sections of Tamilnadu VAT Act.
Experts please advice at the earliest and thanks in advance.
T.Ram Mohan
Our Scope of Supply of Control Panel is Rs.5,00,000 & have received material to be fitted in Control panel from customer worth Rs.5,00,000.
We will bill the customer with Rs.10,00,000 with Excise duty of Rs.1,03,000. But for VAT calculation the free cost material worth Rs.5,00,000 must be removed as stated by customer and to be calculated on Rs.6,03,000 (ie., 11,03,000 - FOC material Rs.5,00,000 = Rs.6,03,000).
Is this method acceptable. If so under what rule / sections of Tamilnadu VAT Act.
Experts please advice at the earliest and thanks in advance.
T.Ram Mohan
18 March 2012
Mr TR Mohan,
Yes it can be done.As you have not purchased the free supply items you will not be selling them also.In the invoice you reduce the product value by deducting the cost of free supply goods and charge VAT on the net value. Excise duty rules are diffrent....MJK
Yes it can be done.As you have not purchased the free supply items you will not be selling them also.In the invoice you reduce the product value by deducting the cost of free supply goods and charge VAT on the net value. Excise duty rules are diffrent....MJK
Message likes :
1 times
20 March 2012
Dear Sir,
Thank you very much for your expert advice.
T.Ram Mohan
Chennai
Thank you very much for your expert advice.
T.Ram Mohan
Chennai
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
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- TDS on Fixed Assets purchased
- Non filing of I T Returns
- GST Intimation due to Government took possession of Business Premises under PPE Act
- UDIN ISSUE
- TDS on purchase of under construction property from a reseller
- SALARY CAN BE CAPITALIZE
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
