CA PRATEEK CHOUDHARY (EXECUTIVE) (94 Points)
22 July 2012
Manjunath
(Audit assistant)
(48 Points)
Replied 27 July 2012
VAT been charged correctly on Rs.600/- VAT to be charged on the sale considaration not on MRP.only in excise on some notified products ED will be lavied on MRP not VAT.and it also need to see that MRP inclusive of tax or not. if it is inclusive than they should not charge.
CA PRATEEK CHOUDHARY
(EXECUTIVE)
(94 Points)
Replied 28 July 2012
"and it also need to see that MRP inclusive of tax or not. if it is inclusive than they should not charge."
i didnt get you what you wanted to convey by this line..pls breif me on this.
Manjunath
(Audit assistant)
(48 Points)
Replied 28 July 2012
Look at MRP tag
MRP (Local Taxes Extra), otherwise he can not charge on it
CA PRATEEK CHOUDHARY
(EXECUTIVE)
(94 Points)
Replied 28 July 2012
no it was inclusive of all taxes..
still he had charged 5% extra on selling price of Rs600.
subramanya
(Professional)
(907 Points)
Replied 29 July 2012
Mr.Prateek,
It depends on the VAT Act and Rules. For eg, in Karnataka for Pharmacetical Dealers, dept has give provision to Pay Tax on MRP(A separate return has to be filled Form VAT 105) or to collect tax on actual price(regular vat return Form VAT 100).
As per the above example given, it is falling under regular VAT Scenario. Hence, VAT needs to be calculated on Rs. 600/- only.
Also others comments are welcome.
with regards,
Subramanya
mahesh sanghani
(purchase)
(40 Points)
Replied 05 June 2017
The rules are not clear yet.
There many questions not answered ,like rile of trasporter .
CAclubindia
