Hi seniors, i am saravanan. actually i am handling the industrial lubricants like hydraulic oil and greases purchase directly from distributors. now we are purchase from him to 14.5% and selling to end user like textile mills, steel plants and other manufacturing units to 5% vat. in this case shall we claim that difference amount between the 14.5% and 5% (9.5%) then what is the procedure to claim that amount. please clarify. i am beginner of the accounts field.
Dear Saravanan, The commodity attracts vat 14.5% If so, why you are selling at lower % Is there any conversion of product before selling? In such case the difference VAT should be cost and no refund.
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