Tnvat - sales of software - taxable value

This query is : Open

CMA.Baskar.V

CMA.Baskar.V (Querist)
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04 September 2014 Sir, I need your inputs on

How determine Taxable Value for VAT applicability on software sales. Whether VAT need to be calculated on Basic Value + Service Tax or only on Basic.
For example:

Case 1 – Basic Software value – Rs.1,000/-
ST @ 12.36% - Rs. 124/-
VAT @ 5% - Rs. 50/-
Total Invoice - - Rs.1174/-
Or

Case 2 Basic Software Value – Rs.1,000/-
ST @12.36% Rs.124/-
Gross Total Rs.1124/-
VAT @ 5% on GT Rs.56/-
Total Invoice Value - Rs.1180/-

Please refer both the case and please suggest, which one need to consider (Please help me with TNVAT Act reference)

muthu

muthu (Expert)
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04 September 2014 Sir
your case1 is correct because you should basic assessable valu Rs 1000/- calculate Tn Vat rate 5% of Rs 50 after add service tax

CMA.Baskar.V

CMA.Baskar.V (Querist)
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05 September 2014 Dear Mr.Muthu,

Thank you for your inputs..

Can you provide related TNVAT Act provision on the same.

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