Dear Experts,
We have to configure the following scenario.
The motor as asset (Excisable and non stockable) is capitalized.
For rewinding we have to sent it to vendor for that the motor should be taken back into stock.Then it will be sent to vendor.
In rewinding process the the vendor adds some bearings (Excisable) and spare parts to Motor.The vendor sends the bill as follows:
1) Vat 5% on 75% of the rewinding value
2) Service Tax 10.3 % on 25% of Rewinding value
3) Vat 5% on Bearings
4) Vat 13.5% on Other Spares.
5) Transportation Charges
We have to receive the Motor back at our premises and again we will capitalized it.
Please suggest the solution.
Thanks in advance.
Regards
Vilas