Goods in different input and sold in different output.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2016 My various goods are purchased with 14.50% input and are sold with 5% output.(Vide Assam VAT Rule), resulting in increasing of 14.5% closing stock value substantially each year and decreasing 5% Stock Value each year. Can anyone tell me what should I do to solve the above problem ?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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29 May 2016 If you are doing that more input less output then every time your tax will be on credit or refundable side. So its better to claim refund every year and don't carry forward tax credit to next return period.

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2016 But sir, what about stock valuation of 14.5% goods, which has been increasing each year ?

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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29 May 2016 You have to set off 14.5% input with output 5% and excess amount will be shown as refundable in current assets side in balance sheet.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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29 May 2016 set off entry need to do in every return and for your excess credit which was carry forward from previous years you need to claim as refund. you have to claim refund in your every return or in last return of financial year.