08 July 2014
dear experts
suppose I purchased some material from some vendor and he did not charged any vat on that because he not registered under vat because he is a small vendor ( less than 5 lacs turnover)
but when I sell that material then is it compulsory to charge vat on that ?
because I am a retailer & my selling price will directly increase by 12.5% and also I didnot have any input setoff for this.
or can I do like this :- on each product my profit margine is 10% so I will charge Vat on 10% only.
(Maharashtra state Vat)
08 July 2014
you are supposed to charge vat on your sale on the sale amount irrespective of the fact that from whom you have purchased the goods are exempted from payment of tax.
CAclubindia
