Can I get information on VAT charged on Service Tax Amount. Calculation is as under.
Softwere purchased 125 no. @ 13500/- = RS. 16,87,500/-
Service Tax 12.36% = Rs. 2,08,575/-
VAT 5% = Rs. 94,804/-
Round of = Rs. 371/-
Total = Rs. 19,91,250/-
PL. tell me whether above taxes are correctly charged ? Whether TDS is applicable as Service tax is Charged ?
Dear Mr. Sagar,
VAT amount computed is incorrect. It would be 5% on Rs. 16,87,500/-
Software has been classified as service, so s tax portion is correct.
In case of VAT, base value is to be considered, not inclusive of service tax.
And yes, TDS will be applicable on the service charged + service tax amount.
Regards
Prateek
Agree with Mr Pratik..... Wct will be Charged on Purchase Price
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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