11 September 2010
Am from Karnataka, running a medical shop,I would like to know the following: 1. Vat is paid on medicines on MRP to the distributor.The distributor gives me a bill on cost price and charges me vat on mrp.Eg: we buy a medicine @rs.100 . But the distributor charges on mrp that is mrp price rs.150@5% =7.5. So we pay to the distributor Rs.100.00 +7.5.00 = Rs.107.50 NOw the question is when filing the vat returns can we offset the input return with output return ie.7.5-7.5=0. we dont have to pay tax. am i right.
CAclubindia
