VAT - Input credit eligibility.

There is a formula for calculating the Input credit eligibility in order to take the benefit of the VAT tax. VAT paid when purchases are made can be set-off against the VAT collected from sale of the goods.

The formula   A * B / C is the way for calculating the eligible input credit.

This formula is only applicable when there are Consignment sales, branch & stock transfers. The formula is calculated two times - one for the 4% VAT and the other for the 12.5%.

Where A = Input VAT paid @ 4% / 12.5%.

B = Total sales other than Consignment sales

C = Total sales ( Consignment, Export, VAT, CST Sales)

Take the values of the above said A * B / C and then first apply the formula to find the eligible VAT @ 4%.

In the second step seggragate the 12.5% in to 8.5 /12.5 and 4/12.5. Callculate the eligible Input credit for the seggregated 4/12.5 . A=4/12.5*B/ C

Add (4%) + (8.5/12.5) + (4/12.5 *B/C).
The sum total of these three is the eligible input credit.

This is to subtracted from the VAT payable and then remit it to the Govt....

from which book have you collected this information ? and please if you know some good site for vat rate in delhi for hiring business of equipment then REPLY!!!!!!!!! THANK U

Hello ! Niveditha .
The information is in the book of " VAT RULES"
You can get this in every book stall....

My name is Dhruva Kumar.
If you get any new topics plzzz share them with me...
Thanking you....

I AM IMPRESS BY YOUR SERVICXE

Very Useful Information is Available here, as it is very useful to guys who are dealing with indirect taxes

A pharma company has been incorporated recently. A building is being  constructed for manufacturing unit.

Shall we get in put credit on Building construction material like cement, sand, iron, glass, electrical matrial, Furniture, AC fitting and other office quipment ie., calculator, staplers, papers, chairs, tables.

Could you explain in detail for obtaining in put credit.

Furtther, Where form 'C' can be issued / received. if not possible what is the rate of tax to be applicable.

Awaiting your reply

Prasad.

Hyderabad. AP.

 

 

 

I have query in regard to input vat credit. My company purchases equipment (computers) from a dealer. They would bill with VAT and We lease it out to customer where in I would be getting input credit. Will the customer being Govt manufacturing unit will also get the input VAT credit ?

Furniture ITC eligible or not? Any Advance Ruling

Dear Sir,

We are manufacturing company, now we can take input credit for packing material.

 

 

Originally posted by :Guest
"	Dear Sir, We are manufacturing company, now we can take input credit for packing material.	"

Yes u can take credit on packing material