Vat calculation to be done on labour service charges and material price.

[Former Member]

Hi exeprt

I have scenario where i required to pay vat on labour service charges nd material price.

Calculation

material price is 1000, in there is additional service on tht we pay service charges.

Material price 1000

lab service charges 12

Vat should on on 1012

Regard

Nabil

[kailas_ugale · Accepted solution]

Hi

where you have problem?

You have to make some changes in your TAXINN procedure

you have to define to and From such way that service tax will calculate on material price in BASB value

then make subtotal for BASB and service tax value

then apply VAt condition on that

I did same for my client

Regards

kailas Ugale

[Former Member · Accepted solution]

Hi

Great ..........could u explain me in detail so i can change the configuration

Regard

Nabil

[kailas_ugale · Accepted solution]

HI

see You have your tax procedure in OBYZ t-code

There you will have subtotal price+excise duty as subtotal in your tax procedure your excise will zero so remain only material price

subtotal 591 =material+service tax -statical

592=service tax 10% on 591

593 =service tax 2 % on 591

594 =service tax 1% on 591

after that subtotal 595 ==from 591 To 594 -stastical

596===vat on 595

Regards

Kailas Ugale

[Former Member]

VAT is on material and Service tax is on services. You cannot mix both.

If you are calculating VAT on 1012 as per your requirement this is not correct and also losing out your money.

Better check your requirement once again.

[BijayKumarBarik]

Hi,

Can you brief your business process / scenarios where both service tax with VAT (sale tax) exist.

NOTE:

VAT applicable in as local tax i.e..... within the state, CST applicable for Inter state sales and Service tax applicable on service performed.

Regards,

Biju K