How Tax is cleared for the purchase based on Company

[Former Member]

Hi,

How they are availing tax credibility for the Purchase transaction. What is the procedure for knock off.

[Former Member · Accepted solution]

All commodities are excisable goods during procurement.

you can either knock off during sale or if any value addition or service you are liable to pay tax to government.

If both were limited Company Any one of them is responsible for the payment of Transport tax(25% of the charges) to the Government.

If one is Ltd. & other is Pvt. Ltd. Company needs to hold the charge & pay it to the government. In this terms Pvt. Vendor will get the deducted pay for his Service.

Edited by: Ganesh M on Jan 24, 2012 9:51 AM

Edited by: Ganesh M on Jan 24, 2012 9:56 AM

[Former Member]

need few more explanation