VAT & Sales Tax Liability
This query is : Resolved
11 May 2009
If One Co. Sales his manufactured product "X" giving offer "Y" free on it showing in invoice (which is not manufactured by Co.
Is their any liability to charge Tax on "Y"
If No Is Co. Take Vat Input on purchase of Y Items?
Is their any liability to charge Tax on "Y"
If No Is Co. Take Vat Input on purchase of Y Items?
11 May 2009
In normal circumstances the value of Y would also have been included in the value of present or future sales of X. Therefore I see no reason to deny the input deduction/ credit for purchase of Y unless the local VAT laws preclude the same.
11 May 2009
Tax on Y would be paid by the person to whom the product is sold.
Input tax credit will be allowed.
Input tax credit will be allowed.
12 May 2009
" Tax on Y would be paid by the person to whom the product is sold.
Input tax credit will be allowed. "
This means Y Product sold to customer by Co. which is shown in bill with zero value and add vat on Y in bill
is it correct???
Input tax credit will be allowed. "
This means Y Product sold to customer by Co. which is shown in bill with zero value and add vat on Y in bill
is it correct???
12 May 2009
No.
Since there is no value of Y being shown by the Co. in its invoice, automatically it gets charged to VAT at an inflated rate when being sold by the purchaser.
Since there is no value of Y being shown by the Co. in its invoice, automatically it gets charged to VAT at an inflated rate when being sold by the purchaser.
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
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- Offsetting interest income against derivative trading losses
- GST Annual Returns filing due date
- Payable outstanding for years disallowance
- RCM - commercial rent paid to URP under GST
- SEC 54 OF IT ACT
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Whether still royalty
- Need help with business structure for setting up a new business
- TDS applicability on Service through ECO
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- 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 Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
