My client is purchasing Agricultural goods after paying 1% cess and with few extra charges.
example
Paddy purchase value 1000
cess 1 % 10
other charges 5
Total 1015
while selling the same goods he will not collect any cess.
what amount should declare as purchase value ?
1000
1010
or
1015
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Is cess should include in Purchase value
Replies (8)
Sir, purchase value does not include cess.
But as your cess inward will be never setoff because there is no outward cess , hence directly or indirectly it adds to your purchase cost as U R paying on purchase
your Purchase cost will be 1015/-
your Purchase cost will be 1015/-
vinod sir,yes as per general law tax will not include with purchase or sale value...as per this concept we should not include cess with purchase value while filling our return right?
Yes you are right sir.............
Rawat sir,but your answer also seems to be correct since there is no out put cess the input cess can be treated as expense and it will added to the purchase value?and how will you add other charges with purchase value?which amount we should disclose in return?
As per my view you can take purchase value 1000 and cess separately taken as input cess in gst returns. other charges accounted as expense in books
Suppose iam paying for A article Rs. 100/- Cess Rs. 10 , & other charges 5/- . I cannot sell the article A for rs. 110 As assuming my purchase cost 100/- ( loss)
moreover I didnt said to show other charges in your return , but when you calculate purchase price for such article you add all such taxes & incidental charges when sell the same
So such charges can tranfer to Direct Expenses
moreover I didnt said to show other charges in your return , but when you calculate purchase price for such article you add all such taxes & incidental charges when sell the same
So such charges can tranfer to Direct Expenses
Yes Pankaj sir. You are 100% right. Agree with your views.
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