Sett off u/r 53 (1) & 53 (2)

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Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2012 Please explain sett off u/r 53(1) & 53(2)

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
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09 February 2012 This rules are for Retention of Setoff of purchases.

I am explaining it For Maharashtra State
U/r 53(1) retention is to be calculated at 2 % on Taxable Purchase value.

U/r 53 (2) Setoff is eligible only to the extent it is being used in Taxable goods.

Setoff is not available on goods which are used in taxfree sale.