14 June 2008
my friend, an NRI, wants to setup a trading business in india.goods( consumable goods) are imported and sold in india.My queries are
i)whether he is liable to pay VAT on imported items ii) is he liable to collect VAT on subsequent sale in India, if yes, what is the percentage of VAT.
iii).whether he is eligible to get VAT input credit
02 July 2008
1.YES, doesn't matter whether goods are imported or otherwise 2. YES, that would be as prescribed rate under VAT schedules i.e. itemwise 3. as you are saying goods would be imported i.e. not VAT paid, so question of ITC doesn't arisen. but he purchase VAT paid goods and subsequently sold then entitled for ITC.
CAclubindia
