Input and output tax
This query is : Resolved
26 December 2017
Currently we are providing C&FA (Clearing and Forwarding Agent) services to our clients. Now my query is, if we are paying security charge bill (with GST @ 28%) on behalf of the Company and in our books we take input tax credit of (tax paid on same bill (GST@28%). And we are covered under 18% tax bracket.
After that we charged the same amount from company by raising a tax invoice (GST@18%).
Is all this accounting process is true.
After that we charged the same amount from company by raising a tax invoice (GST@18%).
Is all this accounting process is true.
26 December 2017
Yes you are liable to charge GST as per your tax bracket
26 December 2017
But sir, is it fair that we are taking input of GST (@28%) and charging from client @18%.
so in that case Govt will only get only GST which is @18%
so in that case Govt will only get only GST which is @18%
26 December 2017
Please suggest sir asap........
26 December 2017
Yes, because the taxes are on output of material or service so what so ever input you are getting that has been charged according to its classification. Further, inputs available to you may be ranging from 0% to 28 % but you have to pay only @18% as prescribed. There is a value addition formula, in your case you have paid through your security service agent 28%.
26 December 2017
Thank you Sir for suggestion
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
