Vat calculation on job work

This query is : Resolved

T.Ram Mohan (Querist)
Follow

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

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

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

Message likes : 1 times

T.Ram Mohan

T.Ram Mohan (Querist)
Follow

20 March 2012 Dear Sir,
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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Jeegar Valera

Tia Blair

Sabareesan S Venkatesh

kambamcr@gmail.com

Nithish Kothari

Subscribe Now

Vat calculation on job work

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

Article Assistant

CA Final

Accountant

Manager- Finance and Compliance

GST CONSULTANT