Please Provide me the calculations method

649 views 5 replies

WE ARE IN TO CONTRUCTION BUSINESS            
WE RAISE INVOICE TO OUR CLAINTS LIKE THIS            
             
GROSS AMOUNT 75000          
VAT @ 12.5 ON 75% OF GROSS AMOUNT 7031          
SERVICE TAX @ 10.3 ON 33.33% OF GROSS AMOUNT 2575          
TOTAL AMOUNT 84606          
             
IF OUR CLAINT PAY PART PAYMENT OF RS.50000/- HOW DO I CALCULATE WHAT IS THE SERVICE TAX INVOLVED IT????
             
PLEASE TELL ME THE CALCULATION             

 

THANKS IN ADVANCE

BIJU

Replies (5)

Please Can anybody help me on this?????????

HI biju, as per my simple thinking or logical thinking... ur calculation goes in prportional basis... That means, the total amount is Rs. 84606, while the amount recieved is Rs. 50000.., then all the taxes should be calculated in propotion to 50000/84606

 

 

 Hi,



If your client is paying part payment, then the entry will be 

Bank A/c Dr

      To Client A/c

When client pays the remaining amount i.e, Rs. 34,606 also, the entry will be same. I dont think so that the service tax & VAT amount need to be apportioned this way. Since, in this case, the total payment amounts to Rs. 84,606 & VAT component is Rs. 7031 & Service Tax Component is Rs. 2575 in total Rs. 84,606, amount need not be apportioned.



Further amount need not be apportioned since it belongs to a same invoice & VAT & ST is calculated on the total basis.

Hi,

i think you can calculate in following way: -

2575/84606*50000= Rs.1522/-

hi

I think you should pay the service tax fully when ever it becomes due as your client pays you part payment.

In future if your client get settle in less amount you may demand credit for the same in parportion basis from both department.

Your accounting entry would be same Divya

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