Hi
i have opened an Organic Shop in punjab.
i have TIN & CST. i am purchasing organic products from companies outside punjab.
products are like, shampoos, oils, soaps, juices etc.
I purcahse stuff against C form.
I am selling products at MRP.
do i have to pay VAT or any other tax and how much?
Regards
Dear Jaspal
You are liable to pay VAT .
VAT is value added tax
It is applicable if there is a sale of goods for a consideration .....so you have to pay VAT on your sale price even though you are selling at MRP.
If the product which you are purchasing & selling is a tax free product than you have to pay VAT on your profit margin.
CAclubindia
