software supplier company chrges service tax on the total cost of soft ware and again charges 5% Vat (Chhattigarh state) on the Gross value of the soft ware including service tax.
Kindly advise whether VAT is applicable in this case ?
Exp. total cost of soft ware 10,000.00 Add Service Tax (12.36%) 1,236.00 --------- Total amount 11,236.00
Add VAT (5%) 561.80 -------- Total Bill amount 11,797.80 =========
01 April 2013
in the case of M/s Ingram Micro India Ltd No. 258/DVAT/2010/22, it has been held that VAT shall be charged on the basic price excluding service tax.
CAclubindia
