For my company sales tax assessment for 07-08 is going. The officer is saying that we have to pay 12.5 % tax on administrative expenses, if we have not done the purchase thru registered dealers.
In fact all expenses in adminstartive head are petty expenses. 90% of the expenses are in cash. Please revert with the proper clause and section for such implication of Tax on administrative expenses.
I need the details urgently as the hearing date is on 5th March. Please revert as soon as possible.
02 March 2010
VAT is not applicable for administrative services that do not involve purchase or sale of any goods. Only Service Tax will be applicable under the head Business Auxilliary Services.
CAclubindia
