Profit margins for trading company

Dear Sir/Madam,

 

I would like to know is there any particular law or section under IT Act or Comapies act towards profit margin applicable for trading comanies to resell the products (which are purchased from manufacturers).

 

Ex: Co. A is a manufacturer, manufactures a toy and sell the same to a trading co "B" for Rs. 100+GST (as applicable as per GST law). but trading Co "B" will sell the toy to his consumer for Rs. 1,400.00 + Tax.

 

Please let us know the above transaction is acceptable as per above said law.

 

Please do  the needful.

 

With Advance thanks 

Pradeep Kumar T V

Replies (2)
Maximum price you can charge from the Customer is MRP.
Product must have MRP as per sales tax Act.
good and nice clarification like it

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details