Mfg.of Shoes., VAT + CST

[Ramesh Parmar]

We Mfg. Shoes, Vat rate of Mtl of shoes is @ 5% but the complete shoes rate is 12.5%. Our cost is including Labour. The difference of 7.5% can be adjusted or not.

Posts / Replies

[Rama Krishana]

When the VAT rate on material is 5% and VAT rate  on finished goods is 12.5%, you can take the full VAT credit of 5% and pay the balance amount of VAT. Where is the question of adjustment of 7.5%?