Vat questions

Others 464 views 1 replies

Hi, we are a new online store jackets, helmets, gloves, etc. 

Our CA has asked me to get the import export license as we are getting everything as imported goods and then reselling it here for a margin.

Also we have to get the VAT CST Registration done.

Then we have the IT in the end of the year. Now, how do we get the profit ?

VAT is 13.5% and then IT 30%. Do we need to price our items super high to earn some profit ?

Or whats the procedure to run a good profitable business ? This way, I see every penny going to govt taxes. 

Replies (1)

There are two things that you are looking at. One is sales tax which is on the sale and one is income tax which is on the margin you make after doing all the expenditure.

There is very little planning that you can do to save sales tax in your case. But in case of income tax you can do some planning. 

Will need more details to explain you the same.

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