Goods purchase including tax & want to sale interstate against c-form

2144 views 6 replies

One of my client, based in maharashtra, purchased sanitary material goods inculding VAT, Vat rates depend on material to material some of 12.5% or 5% etc...

When he ws selling the same goods to maharashtra customers, than such customers want the invoice by leying a VAT Seprately... than in such a case he ws reversing the same & than leying the tax & give tax invoice to party.



But Now, he has to sale it to insterstate against c-form, by leving cst @ 2%



My query is How the calculation he should do ?? coz he's doing like  suppose goods of1000 inculding vat

than invoicing ..

                                              1000

les 11.11%:                          111

gross                                    889

add vat 12.5%                     111

total amt                            1000

add cst 2%                           20

total                                    1020




I know this is the double levy of taxation... but please help me out in this regards, HOW WILL BE THE CALCULATION??

Replies (6)

VAT is always available as credit. Hence it should not be part of your cost. In your case CST should be on 889 + profit margin.

Generally CST to be charged on the sale price agreed with customer.

Regards

Dayananda

 

Yes You r saying correct!!!!!!!!!!!!!!!! tht's the confirmation i was looking for!!!!! THANK YOU

Agreed with Mr. Dayananda

Yes Thnks You both of you MR. DAYANDA & NITIN...


 

 


 

Dayananda & Nitin is correct. ( I am regularly facing this type of entry in my Company)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

hmmmm ok!!

 

 

 

 

 

 

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