05 December 2012
hi experts plz answer my queries i am having business of colouring of perfume bottles wat all tax i have to pay service tax, vat.my turnover is less than 10 lacs. suppose i make invoice of rs 100 in which 60 is material 30 is labour and rs 10 is my profit on wat amount i have to pay service tax and on wat amount i have to pay vat.
19 July 2024
As of my last update, India has transitioned to Goods and Services Tax (GST), which has replaced the earlier taxes like Service Tax and VAT (Value Added Tax). Here’s how GST applies to your business of coloring perfume bottles in Maharashtra:
### Goods and Services Tax (GST):
1. **GST Registration**: - If your turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states like Maharashtra), you are required to register for GST.
2. **Turnover Below Rs. 20 Lakhs**: - If your turnover is below Rs. 20 lakhs (Rs. 10 lakhs for special category states), you are exempt from GST registration and do not need to collect GST from your customers or file GST returns.
3. **Invoicing and Tax Calculation**: - Since your turnover is less than Rs. 10 lakhs, assuming you are not registered for GST: - You do not need to charge GST on your invoices. - You also do not need to pay GST on your inputs (like raw materials and services).
4. **Service Tax and VAT**: - **Service Tax**: With the introduction of GST, Service Tax is no longer applicable. - **VAT**: Similarly, VAT has been subsumed under GST and is no longer separately applicable.
### Tax Calculation on Invoice:
- **Invoice Amount**: Rs. 100 - Material Cost: Rs. 60 - Labour Cost: Rs. 30 - Profit: Rs. 10
Since you are not registered for GST:
- You do not need to calculate or pay GST on the invoice amount. - There is no VAT applicable separately under the current GST regime for your turnover level.
### Conclusion:
Given your turnover is less than Rs. 10 lakhs, you are not required to register for GST or pay any GST on your sales. You also do not need to worry about Service Tax or VAT as they have been replaced by GST. Ensure to monitor your turnover annually, as exceeding the threshold will require GST registration and compliance. For precise and updated advice, consider consulting with a local accountant or GST practitioner familiar with current regulations in Maharashtra.
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