Confusion on vat

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nayan luhana (Querist)
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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.

P V Ram

P V Ram (Expert)
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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.

Thanks!

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nayan luhana

nayan luhana (Querist)
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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.

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P V Ram

P V Ram (Expert)
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06 January 2014 CST you pay for purchase is your expenditure.

You need to charge VAT on Rs. 130 only.

Thanks!