Tax on Tax
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 June 2010
sir/madam
what will be the right calculation/sequence, when there are VAT, Service Tax and TDS involve in one bill? Which one should cacutate first? Can we consider Tax on Tax?
what will be the right calculation/sequence, when there are VAT, Service Tax and TDS involve in one bill? Which one should cacutate first? Can we consider Tax on Tax?
27 June 2010
VAT and service tax will separately be on two different components of the invoice, viz, product and service respectively. And for TDS, for rental income there is specific guidance from IT department that it has to be on an amount excluding service tax. Although, there is no specific guidance in other cases, we can take clue from above that TDS would be on an exclusive amount.
28 June 2010
TDS will be on the gross amount credited or paid. Tax should be deducted on the gross amount of the bill including claim of reimbursement of actual expenses ( Circular 715 dated 8.8.1995)
28 June 2010
There are 2 things
1- VAT, which is levied on the purchase of material. When in the bill or invoice the amount of material purchased in seprately discolsed then TDS (u/s 194C) shall be deducted on amount excluding the amount of material purchased and VAT.
2- Service tax, which is levied on providing services. There was a notification issued by CBDT in 2008 which excludes service tax from the bill in case of Rent (u/s 194I). But in other sections it was silent. Hence in other sections TDS need to be deducted on Gross bill including Service tax.
Although it looks like double taxation but it is not so because TDS deducted is set off against the tax liability of the person and there only actual services or contracts are considered i.e. VAT and service tax are excluded.
1- VAT, which is levied on the purchase of material. When in the bill or invoice the amount of material purchased in seprately discolsed then TDS (u/s 194C) shall be deducted on amount excluding the amount of material purchased and VAT.
2- Service tax, which is levied on providing services. There was a notification issued by CBDT in 2008 which excludes service tax from the bill in case of Rent (u/s 194I). But in other sections it was silent. Hence in other sections TDS need to be deducted on Gross bill including Service tax.
Although it looks like double taxation but it is not so because TDS deducted is set off against the tax liability of the person and there only actual services or contracts are considered i.e. VAT and service tax are excluded.
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 September 2011
Supposed, I have purchased goods in Assam with 13.50% VAT extra.
at delivery I paid Rs. 113.50. Additionally I paid Rs. 30 to the carrier as Freight and Service Tax on carrying Rs. (Rs. .78) (30 x 25%) * 10.30%) at my stores it cost Rs. 113.50 + 30 +.78 = Rs. 144.28, Now if i charged VAT when resale the goods, should i exclude Service Tax paid Re. .78 ?
at delivery I paid Rs. 113.50. Additionally I paid Rs. 30 to the carrier as Freight and Service Tax on carrying Rs. (Rs. .78) (30 x 25%) * 10.30%) at my stores it cost Rs. 113.50 + 30 +.78 = Rs. 144.28, Now if i charged VAT when resale the goods, should i exclude Service Tax paid Re. .78 ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Event company query
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
Trending Online Classes
CAclubindia
