22 April 2008
if your purchases are from exempted unit then you will charged vat on gp only f.e. if your purchase is rs.10000/ from exempted unit package scheme of incentive and you gp is rs 1000/- then you sales is rs 11000+vat on rs 1000/ rate applicable to that goods in your state
22 April 2008
If you purchase vatable material from a dealer not registered under VAT, you have to pay purchase tax @ 4% which u are not entitle for Input Tax Credit. Therefore U have to raise invoice by charging at applicable VAT Rate (since u r a VAT dealer) keeping in view your margin and extra taxes paid.
CAclubindia
