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VAT On Catering/Banquets

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Our client is in the busineess of providing catering catering services and banquets . they charge a bill in the following manner

Consolidated Amt.            1000

Vat @ 12.5%                   125

Ser.Tax @ 10.3 on 600     61.80

(60% Abatement)

Total                              1186.80

but my question is whether the ABATEMENT is also available in vat as well,

are they supposed to charge vat on 600 i.e. 12.5% of 600 or 12.5% of 1000 only.

Any help is appreciated.

Replies (3)

VAT should be charged on 100% Value

Originally posted by :Vijay D
" VAT should be charged on 100% Value "

Please provide me with some reference material so that i can make an concrete argument.

Hi Jatin,

Sorry...... I don't have any reference material but as per my understanding based on my experience I had replied that VAT should be charged on 100% value. I had never been heard about any kind of abatement rules in VAT.

If you have any reference with regard to abatement in VAT then please let me also inform for my knowledge.

Regards

Vijay D


CCI Pro

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