( Author )
08 May 2012
Input is Mustered seeds. Outputs are Mustered oil & oil cakes.Oil cakes are exempted from VAT.Suppose for a particular month 4000 kg Mustered seeds are purchased @ Rs.25/- per kg paying 4% VAT(i.e., Rs.100000 + VAT Rs.4000). 3000 kg seeds are processed and 1000 kg oil and 2000 are kg oil cakes are produced.800 kg oil are sold for Rs. 80000/- + VAT 4% i.e.,Rs.3200/-.2000 kg oil cakes are sold for Rs.40000/-. Is reverse credit necessary for sale of oil cake? If yes, then how much reverse credit is taken. Please mention Section/Rule or notification.