Billing underworks contract tax

Others 1171 views 1 replies

Please be kind enough to clarify my query. We have been issuing invoices mentioning only the Total amount which includes the WCT  from our Trading company which falls under Composition scheme to our client. Our client is insisting on taking the input of Vat for these invoices. Is this possible as under Composition scheme we are not allowed to mention the tax component. Please do clarify.

 

Thanks

Replies (1)

under the composition scheme ( Better known as Compound levy scheme) your client cannot claim any VAT Credit on the Invoices issued by you..

White paper neither permits U to issue invoices mentioning VAT nor permits Ur Client to take credit on the goods etc. recd. from a seller who has opted for compound levy scheme

 

Regards

Tushar


CCI Pro

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