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Currently on Purchase from Manufacturers,we can get Input of Excise in 2 years (1/2 in Year of Receipt and half in next year)
But no input of Vat Component is available
Example
Expenses
| VODAFONE | Machine Purchased from Y Ltd | ||
| Internet Bill | 4000 | Machines | 80000 |
| Add | Excise 12.5% | 10000 | |
| Service Tax @ 14% | 560 | Total | 90000 |
| Swachh Bharat Cess @ 0.5% | 20 | Vat 5% | 4500 |
| Krishi Kalyan Cess @ 0.5% | 20 | ||
| Total | 4600 | Total | 94500 |
Service Provided
| Service to X Ltd | |
| Consultancy Service | 100000 |
| Add | |
| Service Tax @ 14% | 14000 |
| Swachh Bharat Cess @ 0.5% | 500 |
| Krishi Kalyan Cess @ 0.5% | 500 |
| Total | 115000 |
Make Service Tax Computation
| Particulars | Service Tax | Swachh Bharat Cess | Krishi Kalyan Cess | Total |
| Output Service Tax | 14000 | 500 | 500 | 15000 |
| Input Service Tax (Input Services) | 560 | 0 | 20 | 580 |
| Input of Excise (Capital Goods) | 5000 | 5000 | ||
| Total Input | 5560 | 0 | 20 | 5580 |
| Service Tax Payable | 8440 | 500 | 480 | 9420 |
After implementation of GST,input of both Central and State GST can be taken
Full Input will be available in first year itself
| VODAFONE | Purchase from Y Ltd | ||
| INTERNET | 4000 | Machine | 80000 |
| CENTRAL GST 12.5% | 500 | CENTRAL GST 12.5% | 10000 |
| STATE GST 5% | 200 | STATE GST 5% | 4000 |
| Total | 4700 | Total | 94000 |
| Service to X Ltd | |
| Consultancy Service | 100000 |
| CENTRAL GST 12.5% | 12500 |
| STATE GST 5% | 5000 |
| Total | 117500 |
| PARTICULARS | CENTRAL GST | STATE GST | TOTAL GST |
| OUTPUT GST | 12500 | 5000 | 17500 |
| LESS | |||
| INPUT GST | 10500 | 4200 | 14700 |
| GST PAYABLE | 2000 | 800 | 2800 |
Remarks
Whole Input of Machine in First Year is a Welcome Step
Input of Vat was not available earlier but now will be available In form of SGSTwhich is a welcome step
