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

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

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3 Answers

  • Best Answer
    Posted on Dec 09, 2011 at 11:55 AM

    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

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    • 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

  • author's profile photo Former Member
    Former Member
    Posted on Dec 09, 2011 at 12:33 PM

    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.

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  • Posted on Dec 09, 2011 at 11:45 AM

    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

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