03 December 2011
our firm is indulged in laser printer cartridge "Refill/Refurbished" Business, therefore we purchase all concerned spares for the same @ 5% vat.
Further,We use Tally-based billing format on which we mention job card number in reference portion of the bill and note down all the spares used in a separate register for the issued job card number.
Moreover, we mention the following in description of items Refurbished Cartridge No : 12a with amount in front and later charged vat 5% accordingly.
Now the question is, am i charging the correct Vat 5% as spares are directly being passed to the customers in the form of job card number, Or should i charge 13.5%?
I have not registered in manufacturing, we are basically reconditioning client's cartridge irrespective of providing New with shell,hence forth the motto of the firm is to provide service to the existing one. should i also get myself register in manufacturing?
Kindly let me know, i would be grateful if assist by few experts.
11 December 2011
Mr. Harsh, It is a coputer stationery chargeable at 5% VAT. Wheteher you sell it along with servicing work or just directly is same.Only 5% VAT is correct.13.5% is wrong.For this purchase and sale of computer stationery also you have to register, if the total sales in an FY crosses Rs5 lakhs.Similarly if you are doing manufacturing also registration is necessary.... MJK
CAclubindia
