Dear All,
If I purchase iron scrap in gujarat at Rs 30/- per kg (VAT paid - 14%) and sell in gujarat at Rs 31/- per kg. Will I be liable to pay VAT. And what will be the VAT amount. Will it make a difference if my company is registered in Gujarat or any other part of India.
Please let me know.
Regards,
Anuj
Mr. Anuj,
If the price of Rs30/-kg is inclusive of VAT it will have Rs3.64 as VAT. You have to collect VAT on your sales of scrap @ 14%.On Rs31/- it comes to Rs4.34/-Kg. So you will have to pay the difference of the two i.e.Rs0.70/- per kg.In otherwords , you collect VAT @ 14% on your sales(output tax),and while filing returns deduct what you have paid on purchases(input tax) and pay the balance amount..
MJK
CAclubindia
