Kindly suggest regarding the following transaction:-
If I purchase a software with licenses from XYZ ltd. and the Purchase Order I will issue bears Service Tax & Maha VAT. Please suggest if the cost of purchase is Rs. 100, then Maha VAT @ 5% will be chargeable on Rs.100 or Rs.100 + Service Tax.
In second case will create cascading of taxes ?
Regards,
Guest
Guest
(Expert)
15 September 2012
In this case people normally charge VAT & Service Tax on cost i.e Rs. 100/-
CAclubindia
