One of my client, based in maharashtra, purchased sanitary material goods inculding VAT, Vat rates depend on material to material some of 12.5% or 5% etc...
When he ws selling the same goods to maharashtra customers, than such customers want the invoice by leying a VAT Seprately... than in such a case he ws reversing the same & than leying the tax & give tax invoice to party.
But Now, he has to sale it to insterstate against c-form, by leving cst @ 2%
My query is How the calculation he should do ?? coz he's doing like suppose goods of1000 inculding vat
than invoicing ..
1000
les 11.11%: 111
gross 889
add vat 12.5% 111
total amt 1000
add cst 2% 20
total 1020
I know this is the double levy of taxation... but please help me out in this regards, HOW WILL BE THE CALCULATION??
Goods purchase including tax & want to sale interstate against c-form
VANDANA (MCOM II ICWAI INTER Working as an ACCOUNTANT BCOM 1ST CLASS) (491 Points)
31 August 2011