pawan kumar (student) (93 Points)
09 October 2008Dear Expertits !
A construction company applied to sales tax authorities for refund of VAT Input Credit as all its purchases were with in state and all its customers had deducted WCT. The authorities after detailed checking of records,instead, have asked to deposit more tax stating that like excise duty, VAT should be charged on the total value after adding service tax. Is it not a tax on tax ?? please advice.
regards
Dear Mr. Pawan
It is a practical problem & experts would avoid replying. As per my practical experience VAT will be charged after adding service tax / excise. My refund claims were also rejected on the ground that some of my suppliers with VAT input were defaulters in paying VAT hence those invoices were rejected for input credit. All these are having no logic but practically true.
CA. O.P. Agarwalla
(C.A.)
(2916 Points)
Replied 10 October 2008
VAT is chrgeable on sale price. Taxes or cess on goods (not on services) form part of sales price. I am of the opinion that noVAT should be levied on service tax. You may please refer definiion of 'sale price' in your local act.
CA. O.P. Agarwalla
(C.A.)
(2916 Points)
Replied 10 October 2008
VAT is chrgeable on sale price. Taxes or cess on goods (not on services) form part of sales price. I am of the opinion that noVAT should be levied on service tax. You may please refer definiion of 'sale price' in your local act.
CAclubindia
