Tamilnadu VAT - Jewellery

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2010 Hi Whether VAT is required tobe paid on purchase of Old Silver items from Customer?

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
Follow

18 April 2010 Please explain your case, whether u are a dealer in silver etc.?

Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2010 Thank u for ur reply sir. We are a Jewellery Retailer. We get old silver items from customers in exchange of new items. For Eg:

New item - 50 gms @ Rs.30 per gm = Rs.1500
Old item - 40 gms @ Rs.22 per gm = Rs.880

After reducing old from the new, we will receive cash of Rs.620.

I need to know whether VAT attracted for the purchase of Old items from the customer as URD Purchase?

Abhas Gupta

Abhas Gupta (Expert)
Follow

26 March 2011 Dear Anonymous

Fortunately there is no Vat applicable on Purchase, of the kind you are explaining. Hopefully you are purchasing this old silver articles from your retail customers, they are not registered with Vat.

Whenever you will be selling old silver as it is or after refining and making jewellery/articles you will be charging Vat from your customers.
Vijay Gupta
OTM JEWELLERY (p) LTD.

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