One of my client provide skin services. Generally these service are sold & billed in packages & customer has to pay the package amount. Now in package it includes both service & product sold. For example there is a package of Rs 40,000/-. In this package client will sold to customer product of Rs 12,000/- & balance is charged to service. But in billing we need to show the package cost + Vat+Service Tax. Now my question is: 1. How to make bill with VAT & Service tax bifurcation which is acceptable by both the department?? 2. What is the method of charging service tax & VAT in case of part payment or payment in installment??
14 April 2016
U have to ascertain the amount of product sold then charging the vat in same and service tax on balance portion. For advance payment recd. Pay service tax on fraction value by dividing whole amount and multiplying service proportion to that amount and also gross up the amount that it will considered inclusive of service tax. And book the balance amount recd in advance as vat is payable only when sale is effected which means ownership and possession both r transferred.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
14 April 2016
Whether it is mandatory to show on which amount Service tax & VAT is calculated on Bill?
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