17 December 2016
A dealer deals in Second hand car trading.
he purchases second hand car from different individual (no one gives bills hence NO VAT paid by him).
Now he sell that cars after furnishing. Now he wish to register under VAT , so at the time selling he will issue invoice on which VAT shall be charged.
My question is whether we should register him under VAT (MONTHLY TURNOVER APPROX 50 LACS ---VAT 5 % ) 'OR' WE SHOULD SHOW HIS INCOME AS 'COMMISSION INCOME' --> MONTHLY APPROX 7-8 LACS [THEREBY REGISTER HIM UNDER SERVICE TAX @ 15 % ] ??
17 December 2016
If dealer of used vehicles than it is better to register under vat, If you are not a dealer help marketing of second hand vehicle on commission than not required VAT. If Commission income exceeds Nine lakhs you have to opt for Service tax registration Threshold limit will be Ten lakhs for registration.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
17 December 2016
BUT IF WE REGISTER UNDER VAT 5 % THAN WE HAVE TO PAY ON SALE VALU (50 LACS PER MONTH ) AND WE DONT HAVE ANY VAT CREDIT AS NOBODY WILL SELL US CAR AFTER CHARGING VAT.
BUT IF WE SHOW COMMISSION INCOME THAN WE HAVE TO PAY 15 % ON 7-8 LACS PER MONTH ONLY. (YES COMMISSION EXCEED 10 LACS IN THE YEAR)