Dear guys,
i am working in limited construction company, latestly we had the situation of paying material & service portiion in single invoice. Party has raised invoice for total value including & service amounted to Rs:2,00,000/-(Material supply - 187500 + Service charge - 12500/-) and tax charged @ 10.3% on 200000/- is Rs:20600/- net bill value is Rs:2,20,600/-
Company has kept the payment hold stating he has to raise ST on invoice for Rs.2,00,000/33%=66,000/- amounted to 66000*10.3% = 6,798/-
Pls clarify why can not we accept the invoice value for Rs:2,00,000/- as assessable value. & in abatement, is there any requirement from non claiming of input tax from sub-contractor.
if possible, anybody pls explain the abatement clause very detaily.
Regards
DNK
CAclubindia
