hi friends.
in chennai,
if Company A sells a good for (100+5%vat) to Company B
Company B sells that good for (100+14.5%vat) to a person C
How much amount A & B will pay to the department?
Is there any potential loss for B when paying to the department?
thank you..
Why there ar different rates for the same goods.When A sells some goods to B charging 5% VAT why B sould charge 14.5% on it.If B buys for Rs 100/- he may sell it for Rs110/-,making avalue addition of Rs10/-.On this value addition he is expected to pay Rs0.5/-(i.e.output Rs5.5 -input Rs5/-). In your example either A or B have applied wrong VAT rates.So, they have to face the consequences as per law.......mjk
CAclubindia
