Raw material sale to the supplier
This query is : Resolved
12 February 2011
Dear All
Ours is autoancilary manufacturing company used to purchase components from one supplier. Can we sale the raw material required by the supplier by purchasing it from other supplier as it cost cheaper to us? Can we gain some profit on it? What will be the Excise/Income tax implications?.
What will be the nature of transction ? Jobwork or pure Sale & Purchase
Thanks in advance
Suhas Deshmukh
Ours is autoancilary manufacturing company used to purchase components from one supplier. Can we sale the raw material required by the supplier by purchasing it from other supplier as it cost cheaper to us? Can we gain some profit on it? What will be the Excise/Income tax implications?.
What will be the nature of transction ? Jobwork or pure Sale & Purchase
Thanks in advance
Suhas Deshmukh
16 February 2011
If the same is an input then you could buy from x and sell it to y. The duty credit availed wouldhave ot be reversed as this is considered as an "as such" sale. This wouldbe a purchase/ sale transaction
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
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Relief u/s Section 89
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- TDS Challan Code
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- SGST balance is there in credit ledger how to adjust for cgst
- E way bill for tractors
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- 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
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
