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Purchase and sale to VAT tin holder

prem shah (article) (22 Points)

16 January 2017

what if i am a vat tin no. holder and i purchase material from urs for rs.1000/- and sell the same for 1400/- to vat tin holder @ 12.5% vat. what will be my vat liabilities?

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3 Replies

CA Aditya Lahoti (Chartered Accountant) (380 Points)
Replied 17 January 2017

Dear Prem,

If you purchase from URD (Unregistered Dealer) and sell to Consumer or RD (Register Dealer), and charge VAT than you will have to pay VAT on GAC (Gross Amount Charged) i.e in your case on Rs. 1400/- @ 12.5% and you will not get any Input Credit as you have purchased goods from URD.

Hope your Query is Solved. :)

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 17 January 2017

AGREE WITH ADITYA SIR,,,,,,,,,,VAT LIABILITY IS YOUR OWN.,,, IF YOU GOODS IS TAXABLE ,,,,,,SO THAT YOU SHOULD CHARGE YOUR INVOICE WITH VAT AMOUNT ,,,,,,,OTHER HAND YOU CAN NOT TAKE INPUT CREDIT BECAUSE YOU HAVE PURACHASE FROM U.R.D.