Online retail

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2012 Hi,

I have a few questions regarding VAT issues and i want experts advice on this.

1.We have some imported articles which need to be sold online.How are we supposed to show VAT on that, we paid import duty but there was no VAT.

2. We purchase fabrics from local market then get it embroidered and stitched.For all these we get no bills.How do we show purchase and VAT?

3. We purchase some beauty products from online store and want to sell them.The invoice is in own name not company name, but we paid VAT.How to go about that?

Please i need help really soon.
I totally rely on your opinion.

Thanks,
Kat

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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17 December 2012 Mr Author,
This on-line business is not much different from that of a normal of shop. When you import some goods there will be no VAT in those invoices.You have to charge VAT in your invoice,and of course, there will be no input credit for you as it is the first sale in this country. While buying any fabrics from unregistered dealers or those who do not want to issue bills you have to raise self purchase bills and collect VAT,if applicable, and pay to govt. Then such collected tax can be claimed as input credit. If you are the proprietor or a partner of a firm an invoice can be issued on your name also,but the TIN of the firm should be quoted in it......MJK

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 Thank you Mr MJK.
So that means that for the imported goods we do not need to raise self purchase bills?
Only once it is sold we will pay the VAT to the govt.?
Also the third part remains unanswered still.

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