I have copyright registered products which are manufactured by other industries in same home state. Now i purchse from them and sell as B2C as traders. Now if my purchase is of Rs 1,00,000 in a year and i sell on the MRP which becomes 10,00,000 . There is a diiference of 9,00,000. In opening and closing stock balance of every month, there is a difference of 90% apx. Suppose in july ending my opening stock is 1,00,000 . In august my sale is 1,00,000. Now at august ending my stock left will be 90,000. But during august ,sale was of 1 lakh. Is there any problem with this? As sale becomes more as products are sold at MRP. But stock with me is on purchase price. How to deal with this ? Once small amount of ITC I can avail. I have to give GST on selling price ? Is ther any problem as my stock disposed slow but turnover is more ? The differnce comes because of expense occured on research and the cost of product 's Die manufacturing was very high
Hi,
From taxation point of view, there is no problem as long as you pay appropriate GST on selling price and appropriate income tax on profit earned.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hello,
There is no problem in your transaction. The only thing is that you will show a higher profit percentage which is the actual scenario in your case.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hi,
There seems to be no problem in your current scenario.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LLB
