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Tax Rate in Billing

12 September 2017

Explain if a WHOLESALER issue the bill of FOOTWEAR MRP Rs.599 but WHOLESALE price is Rs.418 then define tax rate 5% or 18% ?

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5 Replies

BS and Associates (Chartered Accountants) (86 Points)
Replied 12 September 2017

5% Only.. Because You need to Pay GST on Invoice Value and not on MRP. Always You Need to Calculate on Invoice Value... I.e., Supply/Sales Value...

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Vijay Chandani (30 Points)
Replied 13 September 2017

Sir, But all the traders in footwear industry of delhi or agra calculating tax on MRP basis. please suggest the section for this rule. Thank u so much...

Vijay Chandani (30 Points)
Replied 13 September 2017

Because for footwear and apparel, there is price clause for calculating tax (i.e. for footwear less than 500-5% more than 500-18%) please help.

rocky (accountant) (953 Points)
Replied 13 September 2017

NO SECTION , BUT THIS IS A GENERAL THING...TAX WILL BE CALCULATED AS PER BILL VALUE.

IF YOU SALE FOR RS. 418

THEN ASSESABLE VAUE = 398/-

CGST - 9.95

SSGST - 9.95

Vijay Chandani (30 Points)
Replied 13 September 2017

Thanku..
I know the same thing but this thing happening with me when clinets sending me their bills, even the company person is not correcting the bills.

Thanku