HOW GST WILL AFFECT GROCERY SHOPKEEPERS (Vaani or general stores owners)
This query is : Resolved
07 July 2017
Dear Experts,
They are selling taxed product to customers with certain profit margin.please satisfy the query.
Thanks
Ankit.
07 July 2017
He must maintain Accounts -Purchase register ,give sales invoice etc.
17 July 2017
sir, I am not getting u properly
28 July 2024
Hi Ankit,
It sounds like you're asking about a situation where a product is being sold to customers with a profit margin, and there are taxes involved. To provide a thorough answer, I need to clarify a few points:
1. **Tax Details**: What type of tax is applied to the product? Is it sales tax, VAT, or another type of tax?
2. **Profit Margin**: How is the profit margin being calculated? Is it based on the pre-tax price or the post-tax price?
3. **Customer Pricing**: Are you looking to understand how the tax affects the final price to the customer or how the profit margin is impacted by the tax?
Here’s a general approach to understanding how taxes and profit margins interact:
1. **Calculate the Cost Price**: Determine the cost price of the product before any tax is applied.
2. **Add Profit Margin**: Apply the desired profit margin to the cost price to find the selling price before tax.
\[
\text{Selling Price (before tax)} = \text{Cost Price} \times (1 + \text{Profit Margin})
\]
3. **Apply Tax**: Add the applicable tax to the selling price.
\[
\text{Selling Price (after tax)} = \text{Selling Price (before tax)} \times (1 + \text{Tax Rate})
\]
4. **Final Price to Customer**: The final price the customer pays includes the cost price, the profit margin, and the tax.
If you provide more specific details, I can offer a more tailored explanation.
Best,
Asha Kanta Sharma
It sounds like you're asking about a situation where a product is being sold to customers with a profit margin, and there are taxes involved. To provide a thorough answer, I need to clarify a few points:
1. **Tax Details**: What type of tax is applied to the product? Is it sales tax, VAT, or another type of tax?
2. **Profit Margin**: How is the profit margin being calculated? Is it based on the pre-tax price or the post-tax price?
3. **Customer Pricing**: Are you looking to understand how the tax affects the final price to the customer or how the profit margin is impacted by the tax?
Here’s a general approach to understanding how taxes and profit margins interact:
1. **Calculate the Cost Price**: Determine the cost price of the product before any tax is applied.
2. **Add Profit Margin**: Apply the desired profit margin to the cost price to find the selling price before tax.
\[
\text{Selling Price (before tax)} = \text{Cost Price} \times (1 + \text{Profit Margin})
\]
3. **Apply Tax**: Add the applicable tax to the selling price.
\[
\text{Selling Price (after tax)} = \text{Selling Price (before tax)} \times (1 + \text{Tax Rate})
\]
4. **Final Price to Customer**: The final price the customer pays includes the cost price, the profit margin, and the tax.
If you provide more specific details, I can offer a more tailored explanation.
Best,
Asha Kanta Sharma
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