sakthi (Business consultant ) (137 Points)
28 August 2014Hi all,
if we incur the service component in the product, shall i issue separate invoice for VAT & Service tax? For example the product value is Rs. 10,000/- which include the installation, delivery, warranty, freight etc. So is it possible to bifurcate the total value interms of vat @ 14.5% for Rs. 7000/- and service tax @ 12.36% for Rs. 3000/-?
Pl suggest.
rgds
sakthi
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 31 August 2014
If the service portion and VAT portion is identifiable then applying TAX Rates as said by you is correct.
In fact in such case raise 2 separate invoice. One for VAT and other for Service tax.
CAclubindia
