If good valur 100 manufacturer charge 18% buyer value 118 buyer resale 128. Then on which value he charge the tax?

If a goods value is 100 and manufacturer charge 18% then buyer value is 118. Now buyer resale goods Rs 128. Including 18% tax and profit. Then on which value he charge the tax?

Add Comment
3 Answer(s)

For rs 10 only.

Answered on July 22, 2017.
Add Comment

Tax applies only on value addition. For eg: Purchase Price is Rs 118 Margin added Rs 10 (this value addition attracts GST Only)

Answered on July 22, 2017.
Add Comment

Purchase price 100.00. Gst on purchase 18.00. Profit of 8.47 added to 100.00 basic price. Total selling price before adding gst is 108.47. Add 18% to 108.47. Gst of 18% on 108.47 = 19.53. Selling price including gst will be 108.47 19.53= 128.00. Out of 19.53 you have already paid 18 (duty credit). You pay balance 1.53 to government.

Answered on July 22, 2017.
Add Comment

Your Answer

Gen GST