Sir,
I need a clarification for VAT charging over tool depreciation charge.
While invoicing, charging Central Excise Duty and VAT on total invoice value including tool amortization cost and then deduct the same after considering ED & VAT. Whether VAT will attract tool cost? (Some Tools are supplied by the customer)Kindly advice please.
Invoice Pattern Examples as follows:-
|
INVOICE PATTERN-I |
|
|
JobRate (a) |
5 |
|
Tool Rate (b) |
3 |
|
Qty (c) |
10 |
|
Job Amnt (c ) =( a x c ) |
50 |
|
Tool Amnt (d) = (b x c) |
30 |
|
Assable Value (e) = (c+d) |
80.00 |
|
Excise Duty @10% (f) = (e*10%) |
8.00 |
|
Cess 3% over ED (g) = (f*3%) |
0.24 |
|
VAT 4% (h) = (e+f+g)*4% |
3.53 |
|
Total inv.Value ( c + f + g + h ) |
41.77 |
|
|
|
|
INVOICE PATTERN-II |
|
|
JobRate (a) |
5 |
|
Tool Rate (b) |
3 |
|
Qty (c) |
10 |
|
Job Amnt (c ) =( a x c ) |
50 |
|
Tool Amnt (d) = (b x c) |
30 |
|
Assable Value (e) = (c+d) |
80.00 |
|
Excise Duty @10% (f) = (e*10%) |
8.00 |
|
Cess 3% over ED (g) = (f*3%) |
0.24 |
|
VAT 4% (h) = (c+f+g)*4% |
2.33 |
|
Total inv.Value ( c + f + g + h ) |
40.57 |
In above, which pattern is correct for raising the invoice to the customer?
