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I buy shirt at 800 with 5% rate of tax and add my margin and sell it at MRP @ 1200 fr which the rate is 12%... fr me it is loss??? please correct me if I'm wrong
Replies (10)
Sir,
Can just make the example in simple words
Thanks
tax on clothing less than 1000 is 5% right?
my question is I purchase a shirt for Rs800 from manufacturer and I sell dat shirt at 1200 so now tax rate will change from 5% to 12%.. how it will work?
my question is I purchase a shirt for Rs800 from manufacturer and I sell dat shirt at 1200 so now tax rate will change from 5% to 12%.. how it will work?
I purchased at 5% and selling on 12% for me it is loss of 7%
No. there is no loss, since output is collected
ok....
Sir,
You should understand one thing, All indirect taxes will not be a burden to traders or manufacturers as the case may be, it will ultimately cost to the person who ultimately consumed.
So even if your output rate 12% and input rate 5%, it won't impact your Profit and loss account (unless you are not entittled to take ITC).
Thanks
thank you so much sir
In my view,
if your price 1200 is inclusive of GST @ 12% than for sure you have loss of 7%
on the other hand if you are charging 1200 plus GST than there is no loss to you,
The tax amount is collecting from the customer and remitting towards the govt. In this case, there is no loss.
As per my personal opinion, there is no impact on profit and loss, its impact on your balance sheet. there is no impact on your profit. dont worry.
If any body have different view then view are welcome. thank you. Disclaimer: this is not Professional Advice....
If any body have different view then view are welcome. thank you. Disclaimer: this is not Professional Advice....
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