Hello,
I'm currently running a used equipment business and have a warehouse (friend's warehouse) in Pune. I'm now getting orders from other parts of Maharashtra (Nagpur, Nashik & Pune) for the equipment I have sourced in Pune (there is no inward memo since most equipments are sourced from individuals who upgrade).
When I do a sale in Maharashtra, my invoice is raised from Mohali (Punjab), what VAT rate should be applicable? I do not have a registered office in Maharashtra, just in Mohali.
5% as in Punjab VAT
OR
12.5% as in MahaVAT
To clarify a bit, my friend will be a dropshipper in ecommerce terms.
Please clarify.
- Sam A
CAclubindia
