Purchase cost 10/- per unit
Labour cost 5/- per unit
Profit margin 3/- per unit
Sale price 18/- per unit

So GST on 18/-@18% =3.24/- per unit
On Purchase 10/-×18%=1.8/- per unit

Net payable-3.24-1.80=1.44

Where as profit is of only ₹3 per unit.

So on 3/- profit 1.44tax is extremely high.

And than extra liability of income tax also stand.

Therefore I request you to advise that is their any reverse charge mechanism to offset the gst liability on labour cost of ₹5.

However, if a trader was there and he purchased any commodity of Rs15 and sell it @ Rs 18 he has to pay gst on value addition of Rs3 only where as this mfg.unit of which I have mentioned above has to pay gst on Rs 8 from his pocket (18-10) which includes labour cost itself of Rs5.

In both the cases entity earning Rs 3 each but one is paying on value addition of Rs 3 and other on Rs 8 so is there any thing like reverse charge mechanism on labour cost?

How can an amendment in finance act can amend companies act( regarding removal of limit for political party contribution by a company ) ? As companies act can be amended only after the approval of rajya sabha but finance bill doesn't require rajya Sabah assent

Can capital gain exemption u/s 54 be availed on farm house. does the definition of residential house property includes farm house???

Thanks in advance

Pvt Ltd company wants to pay the salaries to directors monthly.
Then GST will be applicable or not???
If applicable then what is the GST rate???
Please suggest????

Respected Sir please let me know how to workout 234-C Intt

Please advise me, that in March-2019, one invoice missed, i only submitted, not filed, how to rectify it, please advise me.

Can excess input tax credit taken be reversed using cash ledger , as we have discontinued business and we have no credit to reverse .

Dear Sir,
We are Cattle feed Manufacturer Our 99.5% Sale Nill Rated only 0.5% scrape sale wastage bags in taxable.
more then 60 % Input purchase taxable.Can we liable for ITC ? Please Guide us.

hello All
I am Sanjay. Want your guidance.
My client has taken loan against property for construction purpose or purchase of another property from NBFC. Is he eligible for rebate of interest and principal paid during the year u/s 24B and 80C.

Kindly advise as soon as possible.
Regards
Sanjay

Our client have received notice u/s 143(1)(4) for the return filed for the assessment year 2018-19.There are 2 demands, in which one is agreed and the other one is disagreed. Actually we want to rectify the return but the option is not available. In that case how to dealt with the situation.