MRP Sales

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2009 Sir,

Our clients are manufacturers of cement having a factory in Andhra Pradesh. They have a warehouse in Bangalore. They sell cement bags on MRP to dealers who in turn sell them to their customers on the same MRP. A margin is given to the dealers on each bag for which a credit note is raised.

Can VAT be reversed in the credit note? If not, are they not paying excess VAT to the extent of VAT on the margin money? The invoice cannot be raised allowing for the margin since it is MRP sales. Neither can this be shown as a discount. How then can we reverse the VAT on the margin given to dealers?

Vishnu Saboo

Vishnu Saboo (Expert)
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15 November 2009 if any credit note raised by seller within 6 months of sale date, where it is shown that basic+excise duty+VAT separatly. VAT can be claimed.
the condition is that, Excess VAT should not beard by purchaseser.