Vat on service tax.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2012 Dear Experts,
We send the material against 4(5)(a) challan to our vender. venders raised bill with service tax 12.36% on Basic value of Invoice, & VAT 12.5% on Service Tax amount & 75% on Basic Value. details as per below.
Basic Value = 51,996.00
Service Tax 12.36% = 6,426.00
VAT on Service Tax 12.5% = 803.00
VAT on Material 75% on Gross = 4875.00
sir, please tell me Taxation charged is right? if yes how to book it.

thanks & regards,

Ganesh Patil

Amol S Joglekar

Amol S Joglekar (Expert)
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02 November 2012 for you entry is same as for other transactions.

Purchases ( works contract)A/c Dr 51996
Vat on purchases A/c (803+4875) 5678
To Vendor's acoount Cr. 57674

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2012 Thanks Amol Sir, but what about service Tax Amt. Vender has charged 12.36% service Tax. & total Invoice Value is Rs. 64,101.00 ( i.e. Basic Value Rs/ 51996.00 , Service Tax 12.36% is Rs, 6427 & VAT 12.5% is Rs, 5678 ).
and aslo note we have sent material against 4(5)(a) challan. is it correct invoice or we have to request for fresh invoce without charging service Tax. because I think (but not confirm) , if materials sent against 4(5)(a) challan then service tax should not be charge.
please advice.

Amol S Joglekar

Amol S Joglekar (Expert)
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03 November 2012 You are right. Service tax need not be charged on the MATERIAL which is supplied by YOU;against 4(5)(a). You need to get the proper clarification from the said vendor.

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