Confusion on vat

This query is : Resolved

nayan luhana (Querist)
Follow

06 January 2014 I have confusion for eg Mr A purchase goods from Mr B and Mr B charges Rs 100 as product cost and Rs 4 as vat.Now A sold goods to Mr C by adding profit of Rs 30
now MR A should charge vat on which amt on Rs 134 or in Rs 130. please reply my query and thanks in advance.

P V Ram

P V Ram (Expert)
Follow

06 January 2014 Net cost to A is Rs. 100 and VAt receivable is Rs. 4.
He intends to add margin of Rs. 30 0n Rs. 100. Hence, A should charge VAT on Rs. 130.

Thanks!

Message likes : 1 times

nayan luhana

nayan luhana (Querist)
Follow

06 January 2014 Dear,PV RAM same question but in place of vat it is cst for eg- Mr Mr A purchase goods from Mr B and Mr B charges Rs 100 as product cost and Rs 2 as CST.Now A sold goods to Mr C by adding profit of Rs 30 now MR A should charge vat on which amt on Rs 132 or in Rs 130. please reply my query and thanks in advance.

P V Ram

P V Ram (Expert)
Follow

06 January 2014 CST you pay for purchase is your expenditure.

You need to charge VAT on Rs. 130 only.

Thanks!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now