Jatin Agrawal (CA) (130 Points)
14 September 2009Our 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.
Vijay D
(Finance Executive)
(227 Points)
Replied 15 September 2009
VAT should be charged on 100% Value
Jatin Agrawal
(CA)
(130 Points)
Replied 15 September 2009
| Originally posted by :Vijay D | ||
| " | VAT should be charged on 100% Value | " |
Please provide me with some reference material so that i can make an concrete argument.
Vijay D
(Finance Executive)
(227 Points)
Replied 16 September 2009
Hi Jatin,
Sorry...... I don't have any reference material but as per my understanding based on my experience I had replied that VAT should be charged on 100% value. I had never been heard about any kind of abatement rules in VAT.
If you have any reference with regard to abatement in VAT then please let me also inform for my knowledge.
Regards
Vijay D
CAclubindia
