for getting input tax credit purchase should be made with a Registered dealer. is it necessary that the 'purchaser' should be registered..?

My sales channel is as follows

COMPANY(in State A) -----> DISTRIBUTOR(IN STATE B) ---> RETAILER(IN STATE B)

The company to distributor invoice has the following details

Invoice Price Tax Final amount
7.56 2% 7.72


The distributor earns a margin of 5% on cost price.

The distributor to retailer invoice has the following details

Basic Price Tax FinalAmount

8.16 13.5% 9.26


My question is, what is the VAT that the distributor has to pay? and how did we arrive at this figure. Also, the basic price in retailer invoice and the final amount in distributor invoice are related as follows

8.16 (basic price) = 7.72 (which is the final amount) + 5% * 7.72 (which is the distributor margin) + 13.5% * 5% * 7.72 (which is the VAT on the margin)

Why is this so ?

I am a little confused on the VAT concept when inter state sale occurs for the distributor. How is the distributor paying the VAT on the value added?



Request you to please help.

my doubt is regarding the latest amended proviso of input credit of the entry tax paid.how much credit is allowable on entry tax paid

Is there is any case laws for input tax credit of retail invoice ??????

Hi,

Can a Minor become a proprietor of a business with his mother as a legal representative, guardian & signing authority and is it possible to get registration under vat Act.

WILL ADVANCE RECEIVED FOR WORK CONTRACT BE TREATED AS SALES ? PLZ RPLY FAST. THANK YOU.

Sir,
Eg: Mr.A Company,situated in Pune, purchased some items from Mr.B Company,Tamil Nadu, without issuing C form & Mr.B charged full rate of Tax.
Clarify, Can Mr.A compny claim input credit?

MY QUESTIONS:
Is it necessary to provide inclusive sale bills to non tin no. holder parties?
As it is required to provide Tin no. of all customers in Vat Audit Report, what if that customer dont have tin no. or has not provided us with its no.?
What is problem if Vat bill is provided to non tin holders?
Our CA guided for this.But it raises question in mind, An individual (non tin holder) buying clothes is charged vat on purchases. then how cloth merchants maintain Tin no.records and report in Vat Audit Report.
Waiting for reply as soon as possible.

Revised VAT rates for AS 2012-13

Hello,

One of my party has provide goods o Rs.5,00,000/- to govt. sector. Amount include charges of labour also.
Party is liable for service tax and VAT.
if they make one invoice of Rs.5,00,000/- then how to calculate service tax and VAT

Please help..........