Tax liability if purchase & sales done as urd

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This query is : Resolved

Vaibhav Dev (Querist)

19 July 2014 Dear Sir / Madam, I am into business of personalised gifting. Currently, I have got an order from a company (manufacturer of steel utensils) who wishes to sell thier tiffin boxes in one of my product (tiffin bag)
I am not a registered Dealer and have no VAT Reg no.

I want to know how can i go ahead with this transaction? Should i get a tax invoice from my vendor?

My cost price would be 5,00,000 + 12.5% vat and selling cost would be 5,50,000 + 12.5% vat.

Can i give a tax invoice without VAT Tin no?
Can my customer claim set-off vat ?

Waiting for your reply? Thank you for your expert advice.

Vaibhav Dev
vaibhav.dev@gmail.com

CA UMESH DULAL

CA UMESH DULAL (Expert)

19 July 2014 1. If your turnover is less than taxable limit (as it depends on stats where you are), no need for registration.

2. URD can not charge VAT on sale.

Vaibhav Dev

Vaibhav Dev (Querist)

20 July 2014 Thank you sir for your reply. I am sorry that i didn't mention that i am located in Mumbai. But i am still unclear about the invoice structure.

If i get a bill of 500000 + 12.5% = 562500
from my vendor then what would be the bill amount that i can give to my customer if i want to earn rs 50000 on my basic cost (rs 500000)

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