Sales tax & vat on sale of imported goods from china

Others 1308 views 3 replies

SVARUAG FUNFAIR

MANAGING DIRECTOR

32 Points Joined July 2013

We are purchasing goods from china and paying the custom duty on port and then the goods reach our retail outlet.

Now when we are furrther selling to other customer what sales tax and VAT we need to charge on the bill in Maharashtra .

How do we book the purchase of these goods if it is purchased by us in following conditions:

1)Purchased by us with our financial resources and then sold ahead to other customer.

2)Purchased by us from the resources of the customer and sold further to the customer ,charging a consultancy fees.

Please help in detail so as to understand the financial aspect of avoiding any future liability arising out of not paying taxes and also guide if sales tax need to be procurred for the firm.

Replies (3)

Deepak sharma

Learner

1433 Points Joined December 2008

VAT should be according to Schedule issued by Maharashtra VAT deptt. (follow the local state vat rate on particular item)

Romesh Tawari

PROPRIETOR

56 Points Joined December 2011

1. in case if you are selling the goods in maharashtra than you have to collect the vat on sell of books as per prescribed rate and you have to deposit the same amount, also you can take vat input credit of 4% which you already paid at the time of importing goods additional custom duty u/s 5.

and if you are selling goods out side the maharashtra to registerted dealer than CST liablity arise 2% against it ou can take vat input credit of 4% which you already paid at the time of importing goods additional custom duty u/s 5.and refund of 2% can be granted by department.

2. if you are working as consultant to buy book tha you have to book only consultancy fees at the time taking order also you need to take service tax number as per regulation of CBEC.

also you need to charge consultant fees + service tax