Vat confusion for online sales, VAT + CST

[Jaswinder Singh Singh]

Hello

We have applied for vat registration. We sell for perfumes and cosmetics online. As now all web portals have made vat reg compulsory we are facing certain problem.

Issue #1

The dealers in state and out of state are not giving bills for certain brand as they get product imported by other means. They put statement that they have not received bill so they cannot issue bill with vat .Now if such product is bought from dealer and sold online to customer the vat is charged in invoice. How will the vat be paid for this kind of sale that does not have input vat invoice.

Issue 2 #Is it necessary to keep matching invoice for every sale For ex

I bought 5 perfume A,B,C,D,E from dealer

And sold 3 perfume B,C,D

Now do I need to generate bills for specific name of just 3 perfume in concern to pay tax.

Posts / Replies

[Ganeshan Kalyani]

Sir,

The point wise reply is given below.

1) if the suppliers do not issue invoice to you on purchase then they are unregistered dealers or are not a tax payers. This may prove to be difficult to you during assessment. In some states there is a provision of purchase tax I.e. if supplier has not paid the tax then purchaser will have to pay the same.

Further while you sale the taxable goods you will have to pay output tax. If you have do not have input tax credit then full tax have to be paid otherwise net off tax to be paid.

2) when you sale the goods then description of the sold goods to be mentioned on invoices. Because the tax applicable is as per the goods. The goods are listed in schedule entry of the Act with the applicable tax.

Thanks