Our client is in the busineess of providing catering catering services and banquets . they charge a bill in the following manner
Consolidated Amt. 1000
Vat @ 12.5% 125
Ser.Tax @ 10.3 on 600 61.80
(60% Abatement)
Total 1186.80
but my question is whether the ABATEMENT is also available in vat as well,
are they supposed to charge vat on 600 i.e. 12.5% of 600 or 12.5% of 1000 only.
Any help is appreciated.