Regarding vat
AMIT KUMAR SHARMA
(Querist) 10 November 2012
This query is : Resolved
Respected Sir,
I need your help regarding a VAT query.
I purchased a material for basic amount of Rs.100/- and VAT paid Rs.4/- extra. total amount paid 104/-.
Further I want to sell this Item of Rs.10/- and I shall charge VAT 0.40/-.
Can I take ITC of Rs. 4/- which I had paid to our Vendor at the time of Purchase of this item.
R Trivedi
(Expert) 11 November 2012
1. Are you registered with VAT department ?
2. Are you doing regular business or it is just one transaction ?
The point is in general you cannot sell a material at a lesser price than its purchase value, but if you are into multiple transactions then following should satisfy:
(Stock in hand + Sale) must be greater than purchase value.
That is the primary condition, after that you check your VAT input and VAT outflow to decide whether to deposit with the department or take back money from department.
