• Registered: 06/19/2015
  • Posts: 3

Topic: Facing New Problem regarding Taxation

As we are Govt. Contractors we need to invoice as follows

item :- ABC
Cost :- 100
Qty :- 1
So Bill Amount will be : 100.00
main prob is VAt 5% on 75% of Bill Amount (coz its Supply Portion) i.e. 3.75
Service Tax 14% on rest 25% of Bill Amount (coz its works portion) i.e  3.50

i need solutions please help me as soon as possible

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,159

Re: Facing New Problem regarding Taxation

Make it two parts:
Item 1: Supply Item / Cost 75 / VAT 5% - 3.75
Item 2: Service Item / Cost 25 / VAT 14% - 3.50

apmuthu's Website

  • Registered: 06/19/2015
  • Posts: 3

Re: Facing New Problem regarding Taxation

Cant bifurcate sale and service item that's the biggest problem

  • Registered: 06/19/2015
  • Posts: 3

Re: Facing New Problem regarding Taxation

One More problem i am facing when i m invoicing its asking me rates after tax can we apply tax separately