Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Sales Tax in India

VAT and Sales Tax - Started By: - Munim Team - Dated:- 11-6-2015 Last Replied Date:- 12-12-2015 - Sales tax is the tax paid to the government for the sale of goods. This is generally a fixed percentage and varies from place to place as well as product to product. Sales tax is levied on each transaction whether it is from Manufacturer to Wholesaler, Wholesaler to Retailer or Retailer to Customer.Sales Tax are of two types: State Sales Tax (VAT, Value Added Tax) - Collected by State GovernmentCent .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in State A itself.Suppose Cost + Margin for the product at Manufacturer’s end is ₹ 100. If the VAT for state A is 10 % then the total VAT amount for this transaction will be ₹ 10, the responsibility to pay this amount to the authority will rest with the manufacturer.Now if the retailer also belongs to State A, keeping ₹ 10 as margin for himself, the wholesaler will sell the product to retailer at ₹ 110 so the tax for the wholesaler will be ₹ 11 but he has to pay onl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as to pay only ₹ 1 as VAT.This is termed as the Input Credit Scheme where the amount of tax is not continuously added for each end user. The final amount of tax levied for this product is ₹ 12 only.Scenario 2:Suppose the Manufacturer of certain goods has manufacturing in State A and selling his product to the wholesaler in State B where there is a branch of manufacturer i.e. Manufacturer has a branch in State B.In this scenario, the manufacturer in State A may stock transfer the good .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version