17 February 2012
I WANT TO KNOW THAT HOW I DO ACCOUNTING WHEN I SELL ANY ITEM WHICH PURCHASE COST IS 100/- AT RS 50/- BECAUSE IT IS USELESS FOR US. CAN I CHARGED VAT/SALES TAX ON SELLING AMOUNT (Rs 50/-) WHEN I SOLD IT.
17 February 2012
Whatever be the sale price you shall charge VAT on the amount of selling price charged in the invoice as the same shall be the sale consideration. As to the selling price being lesser than the purchase cost, there is no issue in this regard.
CAclubindia
