Vat bill

VAT (Legacy) 253 views 2 replies

Suraj Singh

4 Points Posted on 29 June 2016

Sir help me with this issue.

I have received cheque from a private limited company in Mumbai. For purchasing computer. But now company is asking for vat bill. But my turn over is not over 500000.

So can I send them vat invoice of the party from whom I am purchasing the computer. And also attached my non vat bill ...we

Will that work .

Also is vat bill is nessecry for every sell f I have not excited the turn over limit ..

Please help me with this thank you

Replies (2)

Harshit Kabra (INVESTOR)

Student CA final

1113 Points Posted on 29 June 2016

if, you sell all over India, you cannot sell without VAT/CST number. In case of inter-state selling, CST is applicable. Though there is exemption in local sale(within your state), there is no exemption in CST, not even a single rupee.

You either sell tax-free items like books and unstitched fabric or get your TIN (VAT/CST no.) to avoid penalties by tax authorities.

And,It is your responsibility to fulfill your tax obligation

JAGJIT KASHYAP

TAX CONSULTANT

109 Points Posted on 29 June 2016

Sir,

I think it is not a taxation issue, it is matter of understanding between you and your customer, that on what condition you got P.O. i.e. purchase order from your customer.

IF there is pre-contion that you will furnish TAX INVOICE, againt the said transaction then your customer is willing to take advanage of Input Credit of VAT.

Now, as you are not a registered dealer whatever is the reason, your customer not be able to get credit of VAT, as you also paid VAT on purchase and add to your cost and charge from your customer and your customer suffer the loss and he can claim legaly the said loss from you.

IF there is no pre-condition then you can not be claimed by him.