22 February 2012
Please let me know how the dual tax calculation is done on Antivirus/Subscription products. For eg- Let X be the value of antivirus A, then tax calcualtion will be- 1. Service tax@10.3% x X=Y VAT/CST@5% x X =Z Total value of A=X+Y+Z
OR
2.Service tax@10.3% x X=Y (let X+Y=W) VAT/CST@5% x W =Z Total value of A= W+Z
Please tell me which option is correct as per govt. rule.
23 February 2012
In both the option MRP is inclusive of all taxes. Please explain if both the taxes needs to be calculated seperately on the base value or VAT will be charged on the amount coming after adding service tax on base value.
CAclubindia
