Margin

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2017 If a goods rs 100 +12% gst means 112 purchased and now I want to sale it with 5 %margin, what value should I consider for margin 100 or 112, I B2b purchase and sale in retail

Please tell

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

30 September 2017 You have to add margin on 100.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

30 September 2017 As Rs.12/- is not your cost. You will receive credit of same while file your return.

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M

RAJA P M (Expert)
Follow

30 September 2017 You ll calculate margin on Rs. 100 * 5% = 5 + 100 = 105... Also you calculate tax on 105. It's 12.60.... You paid Rs. 12. ITS YOUR COST and You received Rs. 12.60 it's not your cost. It's payable to govt... But, You ll be less your cost in payable cost. Then you can pay only balance amount to Govt...

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

01 October 2017 the answer may differ depending upon your status under GST.....
01. if registered under GST either through volume/migration/voluntary....... 100 is you cost
02. if registered under composition........ 112 is your cost. You need to take into account the fact that you have to pay 1 % as GST on sale.....
03. if unregistered.......112 is your cost, calculate 5% on 112