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This query is : Resolved
04 May 2018
Dear Experts,.
The vendor "A" Ltd brought material from third party ( in this case "B"Ltd) ) and delivered to us ( ZZZ Ltd ) with charged GST @18%.
In this case, A Ltd paid Rs 34430 ( Basic 29178 + GST 18% 5252 ) to B Ltd and Raised invoice to ZZZ Ltd with the value of Rs 43552.57 ( Basic 34430 + Markup 2478.96 + GST 18% 6643.61 ).
The Basic value of rs 34430 has inclusive of GST and again charged GST from ZZZ Ltd. Kindly confirm is this double taxation.?
Note :
Vendor argue that its not double taxation, As per the agreement term vendor will charge for their service that is Landed cost + 6% ( Mark-up / Margin ) = taxable amount + taxes at actuals.
Kindly let me know, What is landed cost ? is it inclusive of GST.? Vendor argument that they have charged GST on total value ( Basic + GST = gross value + markup + GST ) is right.?
The vendor "A" Ltd brought material from third party ( in this case "B"Ltd) ) and delivered to us ( ZZZ Ltd ) with charged GST @18%.
In this case, A Ltd paid Rs 34430 ( Basic 29178 + GST 18% 5252 ) to B Ltd and Raised invoice to ZZZ Ltd with the value of Rs 43552.57 ( Basic 34430 + Markup 2478.96 + GST 18% 6643.61 ).
The Basic value of rs 34430 has inclusive of GST and again charged GST from ZZZ Ltd. Kindly confirm is this double taxation.?
Note :
Vendor argue that its not double taxation, As per the agreement term vendor will charge for their service that is Landed cost + 6% ( Mark-up / Margin ) = taxable amount + taxes at actuals.
Kindly let me know, What is landed cost ? is it inclusive of GST.? Vendor argument that they have charged GST on total value ( Basic + GST = gross value + markup + GST ) is right.?
05 May 2018
It is not right. They will be claiming ITC on GST of 5252. They have to pass on the ITC to you.
They will not be paying GST of 6643.61 charged from you. They will pay GST only 6643.61-5252=1391.61.
They will not be paying GST of 6643.61 charged from you. They will pay GST only 6643.61-5252=1391.61.
05 May 2018
It is a case of unjust enrichment report to GST authorities.
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