Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Input vat reversal-mp vat act

DHARMENDRA SHARMA (Senior staff) (444 Points)

17 January 2014

Dear All,

I have a query related to input vat reversal in Madhya Pradesh VAT Act. Actually,One of my client is a manufacturer and he is making Taxable as well as tax free goods.The problem is that the raw material is being used for making both type of goods but we are unable to account for them seprately.Should i reverse full VAT amount or there is any other way for this condition?? Please refer Section or Rule of Madhya Pradesh VAT Act. Prompt reply will be appreciated. Thanks in advance.

Reply
Follow
Share

2 Replies

niteshporwal (article assistant) (63 Points)
Replied 17 January 2014

Dear.,You should reverse the vat amount only to the portion of raw material used for manufacturig taxable goods only, not the portion of raw material used for tax free goods....

DHARMENDRA SHARMA (Senior staff) (444 Points)
Replied 17 January 2014

But the problem is that we can't bifucate how much quantity is being used in the production of tax free goods.Whether it can be reversed on the pro rata basis of tax free and taxable sales??Please answer with specific section reference or notification of MP VAT.