How to vat charge on medicine, its cover in MRP.
Ravi Prasad
(Self employed)
(148 Points)
Replied 08 November 2010
In Karnataka, you can opt for a scheme in which you can pay taxes on MRP basis, but I dont know in other states.
First, if you are selling goods at the MRP see that the value plus taxes donot exceed the MRP. If the MRP value of the goods is Rs.104-00 inclusive of taxes, then bill it as Rs.100-00 for value of the goods and Rs.4-00 as VAT (assuming Medicines are taxable at 4% VAT).
But you have freedom if the goods are MRP plus local taxes extra. In that case, the value of the goods must not exceed the MRP, donot worry about the tax.
CAclubindia
