Posted Date : 27-May-2017 , 03:30:22 pm | Posted By YASH Your Rating: NoneAverage : 0.00
If Person not in Composition Dealer
Manufacturer
Trader 1
Trader 2
Trader 3
Cost
90
100
110
121
Profit
10
10
11
12
Sale Price
100
110
121
133
GST
18
19.8
21.78
23.94
TOTAL SALE PRICE
118
129.8
142.78
156.94
GST 18%
18%
1%
1%
If Person in Composition Dealer
Manufacturer
Trader 1
Trader 2
Trader 3
Cost
90
100
129.8
142.208
Profit
10
10
11
12
SALE PRICE
100
110
140.8
154.208
GST
18
19.8
1.408
1.54208
Total Sale Price
118
129.8
142.208
155.7501
Goods will be cheaper in case of composition of goods if same amount of profit is being kept in chain
As per above system, being quantum of profit earned is same both in composition and Normal Dealer
Analysis, if you are in chain & in position of trader No. 2 and so on, goods can be sold lower than Normal dealer. Per Piece/ Kg Goods cheaper of Composition dealer
By CA Yash Bhugra
If Person not in Composition Dealer
Manufacturer
Trader 1
Trader 2
Trader 3
Cost
90
100
110
121
Profit
10
10
11
12
Sale Price
100
110
121
133
GST
18
19.8
21.78
23.94
TOTAL SALE PRICE
118
129.8
142.78
156.94
GST 18%
18%
1%
1%
If Person in Composition Dealer
Manufacturer
Trader 1
Trader 2
Trader 3
Cost
90
100
129.8
142.208
Profit
10
10
11
12
SALE PRICE
100
110
140.8
154.208
GST
18
19.8
1.408
1.54208
Total Sale Price
118
129.8
142.208
155.7501
Goods will be cheaper in case of composition of goods if same amount of profit is being kept in chain
As per above system, being quantum of profit earned is same both in composition and Normal Dealer
Analysis, if you are in chain & in position of trader No. 2 and so on, goods can be sold lower than Normal dealer. Per Piece/ Kg Goods cheaper of Composition dealer