Trade scheme to diatributors

This query is : Resolved

anand (Querist)
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01 November 2008 We have recently launched a software product in complete packaged form to be sold of the counter.

We are appointing distributors. The product price is Rs 10000/- + vat If individual approaches us we sell at Rs 10,000/- +vat each.

For distributor we sell

at 7500+vat each for first 25 no's ( Invoice Raised 7500+vat each)

thereafter at Rs 6500/-+vat for 26-50 slab( Invoice Raised 6500+vat each)

thereafter at Rs 5500/-+vat for 50-100 slab( Invoice Raised 5500+vat each)

thereafter at Rs 5000/-+vat for 100 & above slab( Invoice Raised 5000+vat each)

will there be any problem with vat(maharashtra)/cst. Or Income Tax.

Right now excise is not applicable to us.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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01 November 2008 There should not be any problem as it is a scheme applicable to any buyer in general.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 November 2008 The word general,in the answer given above, is very important as far as the issue raised is concerned.
The above scheme should be consistently followed to all distributors at least for a financial year.
Otherwise question of tax evasion may be raised from the side of revenue authorities.

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