17 December 2009
In maharashtra we are paying exicse on free issue material supplied to the material on sub-contracted basis & In Vendor bill the Tax Calculation is as below.
1) Basic Ammount of Vendor bill + Free issue Value + 8.21% excise duty - free issue value = A Applicable VAT on A amount,which gives total bill amount.
But 1 of my vendor from chandighar is asking the same in below format.
2) Basic Ammount of Vendor bill + Free issue Value + 8.21% excise duty =A Vat on A amount - free issue Value ,which is final ammount PLease suggest the rules are different in the two states or not. PLEASE clarify the same.
18 December 2009
this is work contract, and in work contract cases, tax applicable on value of material passeed and not the assesable value as per excise.
CAclubindia
