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) = $$$
or Method 3
Price = XXX Vat @ 4%on (XXX) = YYY Service Tax @12.36% on(XXX+YYY) = ZZZ Bill Amount(XXX+YYY+ZZZ)= $$$
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
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