Currently Service Providers do not get Input of Vat
as Service tax is under Central Government and Vat under State Government

Example

Expenses

VODAFONE   Purchase from Y Ltd  
Internet Bill 2000 Office Stationary 800
Add      
Service Tax @ 14% 280 Add  
Swachh Bharat Cess @ 0.5% 10 Vat 5% 40
Krishi Kalyan Cess @ 0.5% 10    
Total 2300 Total 840

Service Provided

Service to X Ltd  
Consultancy Service 20000
Add  
Service Tax @ 14% 2800
Swachh Bharat Cess @ 0.5% 100
Krishi Kalyan Cess @ 0.5% 100
Total 23000

Make Service Tax Computation

Partoculars Service Tax Swachh Bharat Cess Krishi Kalyan Cess Total
Output Service Tax 2800 100 100 3000
Input Service Tax 280 0 10 290
Service Tax Payable 2520 100 90 2710

After implementation of GST,input on these can be taken

VODAFONE Purchase from Y Ltd  
INTERNET 2000 Office Stationary 800
CENTRAL GST 12.5% 250 CENTRAL GST 12.5% 100
STATE GST 5% 100 STATE GST 5% 40
Total 2350 Total 940
       
Service to X Ltd  
Consultancy Service 20000
CENTRAL GST 12.5% 2500
STATE GST 5% 1000
Total 23500
PARTICULARS CENTRAL GST STATE GST TOTAL GST
OUTPUT GST 2500 1000 3500
LESS      
INPUT GST 350 140 490
GST PAYABLE 2150 860 3010

 

Learn in your speed, with individual attention - Teachoo Maths 1-on-1 Class

Ask a doubt
CA Maninder Singh's photo - Co-founder, Teachoo

Made by

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.