Wct-vat & service tax entry
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 March 2013
Dear All,
In Case of Works Contract Service we have to pay both VAT & Service Tax,
For VAT if we are not able to separate Value of Material & Labour charges we go for standard deductgion option (e.g. in Maharashtra 25% standard deduction is available for labour)and on balance we have to pay VAT,
However,for service tax the chargeable value is 40% of total contract price as per service tax rules.Therefore we are paying tax on 115%(i.e.75%+40%).What is the solution for this and how to pass accountinf entries.
Please reply at the earliest.
In Case of Works Contract Service we have to pay both VAT & Service Tax,
For VAT if we are not able to separate Value of Material & Labour charges we go for standard deductgion option (e.g. in Maharashtra 25% standard deduction is available for labour)and on balance we have to pay VAT,
However,for service tax the chargeable value is 40% of total contract price as per service tax rules.Therefore we are paying tax on 115%(i.e.75%+40%).What is the solution for this and how to pass accountinf entries.
Please reply at the earliest.
19 March 2013
Let us assume the amount charged by Service Provider(Exclusive of VAT & Service Tax) is Rs. 100
Following entries shall be passed
From Service Provider's Point of view:
(Assuming VAT rate is 10% on 75% of the value)
Debtor A/c Dr. (100+7.5+4.944)
To Income A/c 100
To VAT Paybale 7.50(100X75%X10%)
To Service tax payable 4.944
(100X40%X12.36%)
Following entries shall be passed
From Service Provider's Point of view:
(Assuming VAT rate is 10% on 75% of the value)
Debtor A/c Dr. (100+7.5+4.944)
To Income A/c 100
To VAT Paybale 7.50(100X75%X10%)
To Service tax payable 4.944
(100X40%X12.36%)
Message likes :
2 times
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 on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- SFT Cash Deposit in Current Account
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- Value of property in capital gain
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
