Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

puchase from composition and sell to customer

23 July 2017

if a composition dealer A purchase goods from other composition dealer B and B sells goods to customer, will it be beneficial to dealers and customers?

Reply
Follow
Share

4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183233 Points)
Replied 23 July 2017

Yes. total tax gets reduced....

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 23 July 2017

No. No benefit to Customer and also dealer.

Bcoz,
Composition dealer's bill is greater than Regular Dealer bill.
Ex: Composition dealer A Purchased goods from Registered dealer Rs. 1000+180=1180
Add Margin Rs. 120 + 1180 =1300
A sell to B Rs. 1300
B add his Margin Rs. 200 + 1300 = 1500. (all are example rate)
Then customer ll be buy Rs. 1500.
It's over cost the goods. So, End user ll be pay upnormal value from purchasing Composition Dealer....

RAMESH D MODI (Proprietor) (4869 Points)
Replied 23 July 2017

it depends on the rate of tax and profit margin.
if these both are high then only it is beneficial to customers.

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 23 July 2017

Mr. MODI Sir,,
Any tax items is high above said way. Exempt items considering that way. But, Other taxable items also rate is high to customers from composition dealer.