Mr. X (Dealer) purchases goods from out of Maharashtra against C-FORM (OMS) @ Rs.107 per box inclusive of everything. He wants to sell same goods in tax invoice format in Maharashtra. I.e. Net + Tax separately shown in invoice format.
Bill format is given below:
Cost of purchase Rs. 107 + profit per Box Rs. 10 = Total Rs.117
Bill as under:
Net Amt of Box Rs.97.50
Vat 20% Rs. 19.50
Total Rs. 117
Is it authentic way of tax invoice?
Purchase asseable value 89.17 and vat @ 20% =17.83 take input vat credit
at the time of sale
Net Amt of Box Rs. 97.50
Vat 20% Rs. 19.50
Total Rs. 117
Tltal vat libility 19.50-17.83=1.67 to be paid to vat department.
X (Dealer) purchases goods from out of Maharashtra against C-FORM (OMS) eg: Goa so he not liable to get input credit under MVAT Input Credit.
Input Credit available , when buying & selling activity carried out within the same state.
My question is if shows Bill as under:
Net Amt of Box Rs.97.50
Vat 20% Rs. 19.50
Total Rs. 117
Is it authentic way of tax invoice if we put Net amt below purchase Amt but Total amt of Tax Invoice Rs.117 inclusive of Our Profit {Cost of purchase Rs. 107 + profit per Box Rs. 10} only presentation is in different style?
Yes
CST paid on input is not available ....
but 1 thing is not digestable....
The Cost to dealer for the product is 107(because he will not get ITC for CST) ....n he is selling it for 97.5(19.5 is the tax amt wich will go to govt.)....so it is not only the disserent style of presentation......
the proper approcah to earn a profit of rs 10 would be ...107+10=117+20%=140.4, it shud be the selling price
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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