Goods Sold below Purchase Price

[mahim dangi]

Hello Experts,

Is it possible to sell the goods below purchase price ? If yes, What are the implications of Vat.

For E.g, Goods purchased for Rs, 100/- Vat paid @ 5 % = ₹ 5/- . Total Price ₹ 105/-

Same product is sold for ₹ 50/- Vat @ 5% = ₹ 2.5/- Total Price ₹ 52.5/-

Now can i claim a refund of Excess vat paid of ₹ 2.5/-?

Thanks in Advance

AI Summary

Exploring VAT Implications: Can You Claim a Refund When Selling Goods Below Purchase Price? A user inquires about the possibility and implications of selling goods below their purchase price concerning VAT. The example provided involves goods bought for 100 with a 5% VAT, totaling 105, and then sold for 50 with a VAT of 2.5, totaling 52.5. The user seeks clarification on whether they can claim a refund for the excess VAT paid, amounting to 2.5, when the selling price is lower than the purchase price.