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Issue ID: 108973
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Should I have to pay tax

Date 31 Jul 2015
Replies 3 Replies
Views 1387 Views
Asked by
VAT liability arises when VAT is stated on a tax invoice; the seller must remit the tax and register accordingly.
Issuing a bill that states gross value, applicable VAT rate and VAT amount creates a VAT liability; the seller must remit the VAT to the department within the prescribed period and must obtain registration with the tax department. (AI Summary)

Hi,

I am a trader in Tamil Nadu. I bought some products without bill and sold it with bill mentioning the tax amount, since the buyer insisted me to give a bill. The tax amount in the bill is around 6000 and my profit is only 1500. Should I have to pay the VAT amount to the government? Please advise.

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