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Excess input vat

Soumyayan (Service) (72 Points)

20 February 2014

Hi All,

Our Company is purchasing goods at westbengal paying VAT, producing at factory at west bengal and selling the goods all over india via depots.e.g.

In Sep13 total input WBVAT credit available - 10,00,000

Output VAT in WB sales - 2,00,000

Stock transfer to depots in different states against form F and from that depot sales made.

on such depot sales output VAT charged by respective state govt. - 14,00,000.

Hence how much Tax we have to pay to different govt.s ?

What to do with the unavailed input WBVAT credit? Will we get it refunded? if yes, when?

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3 Replies

Ashok Singh (Practice) (176 Points)
Replied 20 February 2014

1) You are purchasing the goods within westbengal, you can claim the input credit in your returns filed by the manufacturing unit provided it is registered unit under WB vat.

At WB output tax is 2 lacs, it can be adjusted against input tax credit of 10,00,000. and remaining 8 lacs carry forward to following periods.

2) As you are transfering stock against F form, so it comes under exempted purchase to the unit which is such stock. So those depots needs to pay all output vat for rs 1400,000.and they can claim input tax credit if they r ddoing local purchases and selling it.

but those depots are not eligible to take input tax credit available with WB manufacturing unit.

Soumyayan (Service) (72 Points)
Replied 20 February 2014

Originally posted by : ashok
	1) You are purchasing the goods within westbengal, you can claim the input credit in your returns filed by the manufacturing unit provided it is registered unit under WB vat. At WB output tax is 2 lacs, it can be adjusted against input tax credit of 10,00,000. and remaining 8 lacs carry forward to following periods. 2) As you are transfering stock against F form, so it comes under exempted purchase to the unit which is such stock. So those depots needs to pay all output vat for rs 1400,000.and they can claim input tax credit if they r ddoing local purchases and selling it. but those depots are not eligible to take input tax credit available with WB manufacturing unit.

Is there any way to get refund of that 8,00,000 ?
Can that carried forward 8,00,000 be adjusted against any of the next period's WBVAT if in that period input is less than the output for that period?
How long it can be carried forwarded?

Ashok Singh (Practice) (176 Points)
Replied 21 February 2014

No You can not get refund of input tax credit.

Ofcourse you can carry forward your input tax credit till the time you get it fully adjusted against output vat. And if in any period say February, if input tax credit is less than output vat at WB unit, then you must take input tax credit against output vat and difference figure should be paid to the state govt.

There is no time limit to carry forward input tax credit till the time you claim it against output vat.