Dear Friends,
Due to error in my billing system, we have charged VAT more than the specified rate, although we have not charged any thing more from the cosomers, at was only back the calculation of VAT and Besic value. Although in our accounting System there is no such error.
- We shall further explain through an illustration which is as follows:
Example 1:- If the product is sold with MRP Rs.100/- and if VAT @ 20%, then the Net amount and VAT amount would be as follows:
Net amount Rs.83.33
VAT amount Rs.16.67 (20%)
-----------------------------------
Total Rs.100.00
==================
Example 2:- In the same way, if the VAT @ 14.5% for MRP 100/-, then the breakup would be as
Net amount Rs.87.34
VAT amount Rs.12.66 (14.5%)
-----------------------------------
Total Rs.100.00
==================
In the above 2 examples, we can notice that the amount received from the Customer is only Rs.100/-, there is no extra amount charged from the Customer, on account of change in VAT rate.
IS THERE ANY LEAGAL PROBLEM???
Regards,
Raghvendra
CAclubindia
