VAT- QUERY
This query is : Resolved
09 March 2009
Hi frnds
i hv a doubt which relates to marginal VAT. pl guide me
1. in the first instance a dealer buys goods from exempted unit and sells the same :
a. at some (margin) profit
b. below the cost price
2. Dealer A sells these goods procured from 1.a. to dealer B and dealer B sells the same in the market below the cost price and at profit.
hw would be the VAT TREATMENT????
i hv a doubt which relates to marginal VAT. pl guide me
1. in the first instance a dealer buys goods from exempted unit and sells the same :
a. at some (margin) profit
b. below the cost price
2. Dealer A sells these goods procured from 1.a. to dealer B and dealer B sells the same in the market below the cost price and at profit.
hw would be the VAT TREATMENT????
HUZAIFA HUSSAIN
(Expert)
10 March 2009
HI
ANS TO 1a - IF DEALER SELLS THE GOODS AT SOME MARGIN WHICH HE PURCHASED FROM EXMPT UNIT THAN VAT = VAT COLLECTED ON SALES - 0
1b - IN SECOND CASE IF HE HAS SOLD THE GOODS BELOW COST PRICE BUT IF HE IS A VAT DEALER THAN HE HAS TO CHARGE SOME VAT ON SALE PRICE(MAY BE BELOW COST) FROM THE BUYER UNLESS THE GOODS ITSELF ARE EXMPTED GOODS. THAN THE SAME ANS. AS IN 1a.
2IN THIS CASE THE VAT COLLECTED ON SALES - VAT PAID ON PURCHASES NEEDS TO BE PAID TO COMMERCIAL TAX DEPARTMENT.
ANS TO 1a - IF DEALER SELLS THE GOODS AT SOME MARGIN WHICH HE PURCHASED FROM EXMPT UNIT THAN VAT = VAT COLLECTED ON SALES - 0
1b - IN SECOND CASE IF HE HAS SOLD THE GOODS BELOW COST PRICE BUT IF HE IS A VAT DEALER THAN HE HAS TO CHARGE SOME VAT ON SALE PRICE(MAY BE BELOW COST) FROM THE BUYER UNLESS THE GOODS ITSELF ARE EXMPTED GOODS. THAN THE SAME ANS. AS IN 1a.
2IN THIS CASE THE VAT COLLECTED ON SALES - VAT PAID ON PURCHASES NEEDS TO BE PAID TO COMMERCIAL TAX DEPARTMENT.
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