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Suggestions ????

17 December 2012

Hi,

plz give me advice, i have business of purchase some wood and furniture in delhi and i send those material to raigarh(chatisgarh).And i procesed this material for final product and i sold in raigarh to one company which have registration in vat(raigarh) but i dont have any vat registration.The company already mention in contract that we would not paid any tax to you.so give me advice sir bcs me and my frnd are confused in these case plzzzzz give me advice what can i do to settle the vat,,,,bcs there are 50 lakh turnover and how to settle the vat which already paid by me....

thanks

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6 Replies

CA Pintu Mishra (Chartered Accountant- Industry) (514 Points)
Replied 17 December 2012

first of all you pls get registered as vat dealer, then only you can get all the vat credit which you have paid to the registered dealers. And since your turnover has crossed 50 lakh you should get registered. When you will be registered then you will have to raise invoice by charging vat and you can get the vat credit paid to the creditors.

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Gaurav Sharma (CA) (298 Points)
Replied 18 December 2012

sir plz read full article ............Because the company already mentioned in the contract that we would not liable to pay any tax.........

Gaurav Sharma (CA) (298 Points)
Replied 18 December 2012

plz give me advice what i do ?

CA Pintu Mishra (Chartered Accountant- Industry) (514 Points)
Replied 18 December 2012

Mr Gaurav If you have crossed your turnover 50 lacs and you sell your product then you must register under cst and vat act. And regarding contract with your dealer/vendor which says they wouldnt pay any tax to you is not required because you can not charge vat /cst unless your are a registrered dealer. And those who are registered will invoice you including vat/cst as the case may be.

So my suggestion for you is that to register yourselve

1- if you cross your sales over and above prescribed by law to get registered ie. 5 lacs and you have sales crossing 50 lacs

2- to avail the benefit of input vat which you have paid to the venders who registered from whom you have made purchases