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Tax exemption limit

Abdullah (Student & Enterpreneur) (34 Points)

01 December 2014

Sir,

I'm a businessman registered my firm as a Partnership firm and I'm selling my products online at e-commerce sites. Please tell me till how much Sales I'm exempted from Tax ? And after that limit, at what Rate, do I have to pay tax ? (My products are Textile Products like Bedsheets and all).
One more query that I'm from U.P. and selling most of goods to Delhi so is there any specific limit of sales exempted from Tax under same state or inter state transactions ?

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9 Replies

shalini (Student CA Final ) (54 Points)
Replied 01 December 2014

There is no exemption limit for sales tax, as it is an indirect tax and you will have to recover it from the customer.You are therefore required to pay tax on your total sales at the rates applicable to your state.

1 Like

Abdullah (Student & Enterpreneur) (34 Points)
Replied 01 December 2014

Is there any Direct Tax which I have to pay on my income?

Abdul Khader (STUDENT) (192 Points)
Replied 01 December 2014

Assakamualaikum

you have to file your Income Tax Return, disclosing all Sale Amount and purchases

Net Profit from Business if it exceeds 2,00,000/- you are liable to pay Income Tax (Direct Tax)

Regards

Abdul Khader

Chartered Accountant

1 Like

shalini (Student CA Final ) (54 Points)
Replied 01 December 2014

yes abdul khader is correct.

You will be liable to pay income tax on your total income i.e,

=Sales - Business expenses,

as per the normal provisions.

Abdullah (Student & Enterpreneur) (34 Points)
Replied 01 December 2014

Walekum Salam Mr. Abdul Khader..
So, apart from Income Tax, do I have to collect Sales Tax on my every transaction ?
I mean is it applicable on Textile products ?