VAT on Closing Stock

This query is : Resolved

Practicing CA (Querist)
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19 December 2008 While calculating the liability for a partiular tax period we take set off of taxes paid on purchases. But whether we have to consider stock factor while calculating set off
ie whether
Set off available = Tax paid On (Op st + Purchases - Cl Stock)
or
Set off available = Tax paid on Purchases

Guest

Guest (Expert)

19 December 2008 Set off available = Tax paid on Purchases

CA Akshat

CA Akshat (Expert)
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20 December 2008 exactly, the credit will be available same as taxes paid on purchases....

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CA Parvin Ahuja

CA Parvin Ahuja (Expert)
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20 December 2008 Tax paid on opening stock is available only for the transition period and not as a regular feature otherwise you will have double benefit which is wrong. Secondly whenever you opt out of composition scheme you get benefit of set off of tax paid on stock available with you at that time.

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