My Client is a Software Seller, they buy and sell softwares to colleges and institutions, now their suppliers started charging service tax as well as vat? how should we charge our customers,
Method 1
Price = XXX Service tax @12.36% on XXXX = YYY Vat on (XXX+YYY) = ZZZ Bill Amount(XXX+YYY+ZZZ)= $$$
or Method 2
Price = XXX Service tax @12.36% on XXXX = YYY Vat on (XXX) = ZZZ Bill Amount(XXX+YYY+ZZZ)= $$$
or Method 3
Price = XXX Vat @ 4%on (XXX) = YYY Service Tax @12.36%on(XXX) = ZZZ Bill Amount(XXX+YYY+ZZZ) = $$$
Please Help Me in This Case Many Suppliers Charges in Different Methods Method is been observed in many suppliers Invoices Which is Correct Method For Calculation
Either Vat has to be charged or service tax vat has to be charged when the software is an off the shelf software
service tax is to be charged when the software is a customized software. .
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