Aggregator service
This query is : Resolved
04 May 2018
Dear Experts,.
The vendor "A" Ltd brought material from third party ( in this case "B"Ltd) ) and delivered to us ( ZZZ Ltd ) with charged GST @18%.
In this case, A Ltd paid Rs 34430 ( Basic 29178 + GST 18% 5252 ) to B Ltd and Raised invoice to ZZZ Ltd with the value of Rs 43552.57 ( Basic 34430 + Markup 2478.96 + GST 18% 6643.61 ).
The Basic value of rs 34430 has inclusive of GST and again charged GST from ZZZ Ltd. Kindly confirm is this double taxation.?
Note :
Vendor argue that its not double taxation, As per the agreement term vendor will charge for their service that is Landed cost + 6% ( Mark-up / Margin ) = taxable amount + taxes at actuals.
Kindly let me know, What is landed cost ? is it inclusive of GST.? Vendor argument that they have charged GST on total value ( Basic + GST = gross value + markup + GST ) is right.?
The vendor "A" Ltd brought material from third party ( in this case "B"Ltd) ) and delivered to us ( ZZZ Ltd ) with charged GST @18%.
In this case, A Ltd paid Rs 34430 ( Basic 29178 + GST 18% 5252 ) to B Ltd and Raised invoice to ZZZ Ltd with the value of Rs 43552.57 ( Basic 34430 + Markup 2478.96 + GST 18% 6643.61 ).
The Basic value of rs 34430 has inclusive of GST and again charged GST from ZZZ Ltd. Kindly confirm is this double taxation.?
Note :
Vendor argue that its not double taxation, As per the agreement term vendor will charge for their service that is Landed cost + 6% ( Mark-up / Margin ) = taxable amount + taxes at actuals.
Kindly let me know, What is landed cost ? is it inclusive of GST.? Vendor argument that they have charged GST on total value ( Basic + GST = gross value + markup + GST ) is right.?
05 May 2018
It is not right. They will be claiming ITC on GST of 5252. They have to pass on the ITC to you.
They will not be paying GST of 6643.61 charged from you. They will pay GST only 6643.61-5252=1391.61.
They will not be paying GST of 6643.61 charged from you. They will pay GST only 6643.61-5252=1391.61.
05 May 2018
It is a case of unjust enrichment report to GST authorities.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Sale of property furniture sale
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
