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Calculation of Tax on sales

Pankaj Kumar (Accountant) (58 Points)

22 June 2017

I am a trader in Bihar, I purchased a material from West Bengal for ₹ 1,00,000/- + paid IGST @ 18%=18,000/-,+ I paid freight for transporting 5000/- . No Now the total cost of this material is ₹ 1,23,000/- . Now I am resaling this material in Bihar for ₹ 1,30,000/- .
Now I want to know that how much rupee I will charge as Taxes in my Tax Invoice?

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5 Replies

Ideal RamMohan Jha JobProvider (2 Points)
Replied 22 June 2017

Include

Pankaj Kumar (Accountant) (58 Points)
Replied 22 June 2017

On Total Amount or only on my profit which I have earned?
pls give in details.

Vineet Aggarwal (Accounts Officer) (316 Points)
Replied 22 June 2017

You have to charge 130000 inclusive of tax including your profit ...... You can adjust tax liability with your ITC but you have to provide benefit consumer as per the ACT

Raghuveer (Executive) (167 Points)
Replied 22 June 2017

Considering you're registered under GST, you can avail the amount of IGST paid as a credit. Thus your cost would become 105000 only.

If you're selling the same material, you would be liable to the same rate of tax as paid by you on your purchase i.e. 18%.

Hence you can charge 18% on your sale value.

You may alternatively sell your Goods for an inclusive price of 130000 including the tax at 18% i.e. Sale value of 110169.50 and tax of 19830.50.