Sir
One of my client dealing in installation in air condition work he doing trading work (direct sale of airconditioning ) and work contract services. now i have two quries.
1) In case if we take annual maintaince contact of air conditiong we have to charge vat on 75% and service tax on 70% so in this case what accounting extry will be passed.
2) what is the procedure of assesment under work contact of a delaer.
Indirect tax treatment of annual maintenance contracts: VAT and service tax apportionment raises accounting and assessment questions The query asks how to record accounting entries where annual maintenance contracts attract VAT on 75% of consideration and service tax on 70%, and requests procedural guidance on assessment of a dealer engaged in work contract activities, including determination and reporting of taxable turnover under work contracts. (AI Summary)
TaxTMI 
TaxTMI 
