Vat on second hand goods

Hi everyone,  I am starting up a new store through which I'll buy and sell used electronic goods such as mobiles, laptops, ipads, etc. A customer can bring his/her old mobile phone to me and I'll offer him/her store credit or cash in lieu of the mobile phone. The customer can then use the store credit or cash to buy a different item from my shop. My question is how will the VAT be calculated in this case? Do I have to pay VAT on the entire sale value of the item or can I claim a rebate on the amount I paid to the customer as cash or store credit? Info - The store would be located in gurgaon and products will be sold all India. 

Any kind of help is highly appreciated. 
 
Replies (1)

your purchase will be condired as URD (purchase from unregistered dealer).

so you have to pay full VAT on ur sale within ur state and CST for sale outside your state.

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