Tax on exhange of old jewellery
This query is : Open
24 September 2017
Hello,
Suppose there is a situation where Mr.A (Jewelery Shopkeeper) & Mr.B (Customer), Mr.B went to Mr.A's shop for buying some jewelery worth Rs.10000/- & he exchanged some of his old jewelery for Rs.3000/- & on billing Mr.A charged tax @3% on Rs.10000/- i.e he collected Rs.300/- from Mr.B in form of tax. But, Mr.B argued with Mr.A that you should charge tax on after deducting Rs.3000/- from Rs.10000/- i.e. on Rs.7000/-.
Who is correct Mr.A or Mr.B ?
Please do reply.
Thank You.!
Suppose there is a situation where Mr.A (Jewelery Shopkeeper) & Mr.B (Customer), Mr.B went to Mr.A's shop for buying some jewelery worth Rs.10000/- & he exchanged some of his old jewelery for Rs.3000/- & on billing Mr.A charged tax @3% on Rs.10000/- i.e he collected Rs.300/- from Mr.B in form of tax. But, Mr.B argued with Mr.A that you should charge tax on after deducting Rs.3000/- from Rs.10000/- i.e. on Rs.7000/-.
Who is correct Mr.A or Mr.B ?
Please do reply.
Thank You.!
24 September 2017
Mr.B is correct as on old goods sale you have to pay tax on margin........
Message likes :
2 times
24 September 2017
Yes. I agreed to CA Rashmi Gandhi...
You can collect Tax on leased value... Also you ll pay Tax under RCM basis for the received gold...
Message likes :
1 times
25 September 2017
There are two separate supply transactions -- sale of old jewelry by customer and supply of jewelry by shop-keeper. Mr. A is correct in charging 3% on transaction value of jewelery Rs. 10000/-. In so far as supply of old jewelry by Mr. B is concerned GST liability would depend on whether sale by Mr. B is registered/unregistered and whether the sale in is in the course of business.
Message likes :
1 times
25 September 2017
Mr. B is a normal individual & Mr.A has made the sale to customer i.e. end user.
Now, on what price to charge tax.?
Now, on what price to charge tax.?
Message likes :
1 times
25 September 2017
Thank u CA Rashmi Mam.
Message likes :
2 times
25 September 2017
But Raja Sir, Mr.A has not received goods above Rs.5000/- so he is not liable to pay tax under RCM..??
Message likes :
1 times
25 September 2017
Yes.... You are correct....
If it's above 5k then RCM applicable...
Message likes :
1 times
25 September 2017
Tax chargeable on Rs. 10000/- as per the Valuation Rules and no RCM applicable.
Message likes :
1 times
26 September 2017
You can either pay tax on 7000/- as per margin rule.
Also you can pay at Rs 10000/- @3% & no RCM applicable on purchase
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- GST ON EXPORT COMMISSION
- Inventory of finished goods
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
