Service tax and VAT

Dear Memb ers,

 

 

We are into Software sales, now are confused with Service Tax & VAT, How to prepare an invoice with both taxes, We have sold a product of rs.15000/-

 

Please suggest me how to proceed

Replies (3)

I can give you some inputs, unsure whether it is fully correct or not. VAT is imposable on service tax and not the other way.

If 10,000 is basic sales value calculate ST @ 10.3% on this assuming no abatement. THen charge VAT on the aggregate amount.

It is debatable on which figure and how your payer will deduct tax at source under income tax laws

Please get back if you have received any other feedback from any source.

Members may please share their thoughts

Dear Mr. Dipjyoti Majumdar,

 

Thanks for your suggestion, I am getting mixed solutions from various sources, few people are collecting Service Tax and Vat on the basic price ie totally 14.3% on the basic price. And few of them are like as you suggested.

I am little Confused how to proceed, who will provide me the correct solution for my problem. If i go ahead with your suggestion the individual clients are not accepting

 

Ramana

SOFTWARE VALUE 15000

VAT @ 4% ......................600

-------------------------------------

TOTAL .........................15600

S TAX 10%....................1560

ECESS...............................31.20

S&HSECESS ...................15.60

-----------------------------------------

.......................................17206.80

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