06 January 2014
I have confusion for eg Mr A purchase goods from Mr B and Mr B charges Rs 100 as product cost and Rs 4 as vat.Now A sold goods to Mr C by adding profit of Rs 30 now MR A should charge vat on which amt on Rs 134 or in Rs 130. please reply my query and thanks in advance.
06 January 2014
Net cost to A is Rs. 100 and VAt receivable is Rs. 4. He intends to add margin of Rs. 30 0n Rs. 100. Hence, A should charge VAT on Rs. 130.
06 January 2014
Dear,PV RAM same question but in place of vat it is cst for eg- Mr Mr A purchase goods from Mr B and Mr B charges Rs 100 as product cost and Rs 2 as CST.Now A sold goods to Mr C by adding profit of Rs 30 now MR A should charge vat on which amt on Rs 132 or in Rs 130. please reply my query and thanks in advance.
CAclubindia
