Sale on commission basis

For VAT to be levied in any state there should be a DEALER and the dealer should have a BUSINESS .

In the current case the person selling the goods is only an agent of your company and not a seller .

VAT is charged by your company on Rs. 1000 and is collecting it from the customers . It means that the goods sold by the stockpoint should be at a price of 1000+VAT+profit ( if any ) on it . Now the stockpoint is selling the goods at 1000 only , it means he is not collecting the TAX from the customers .

Conclusion : VAT is to be paid by your company from the company's pocket .

                        The company should tell the stockpoint to sell the goods at a price which is at least 1000+VAT charged by your company .

dear harshal,thanks for reply.

price of rs 1000 is including vat.

whether stockpoint is liable to any vat/ or to file sale tax return. bcs he has to give bill of rs 1000/- to customers . should he give bill on the name of stockpoint or on the name of company.

There is no requirement of filing sales tax return for the stock point because he is only an agent and not a dealer . There are two options available to the stockpoint : issue bill in the name of the company OR not issue the bill . ...