Hello,
Suppose there is a situation where Mr.A (Jewelery Shopkeeper) & Mr.B (Customer), Mr.B went to Mr.A's shop for buying some jewelery worth Rs.10000/- & he exchanged some of his old jewelery for Rs.3000/- & on billing Mr.A charged tax @3% on Rs.10000/- i.e he collected Rs.300/- from Mr.B in form of tax. But, Mr.B argued with Mr.A that you should charge tax on after deducting Rs.3000/- from Rs.10000/- i.e. on Rs.7000/-.
Who is correct Mr.A or Mr.B ?
Please do reply.
Thank You.!
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Tax on exhange of old jewellery