VIMAL (ASSISTANT MANAGER FINANCE) (58 Points)
15 September 2010Dear Friends
Wanted to check the rules for VAT Input reversal when the local procurred goods at Delhi are Stock transferred to other states. What would be the eligible input credit in Delhi and how much we need to reverse.
Regards
Vimal
Balkrishan Dabral
(Manager-Commercial)
(23 Points)
Replied 17 September 2010
There is no need of reversal of input credit when the goods are transferred from Delhi to some other state because when you will sell these goods you have to pay the VAT in that state, so you can take the full Input credit in Delhi.
Balkrishan Dabral
(Manager-Commercial)
(23 Points)
Replied 17 September 2010
Rajendra Pant
(Audits & Accounts Head)
(25 Points)
Replied 25 September 2010
how to calculate VAT input agst. stock trafered in case of VAT input is 4%, how many amount disallowed from VAT input
Ravi Prasad
(Self employed)
(148 Points)
Replied 25 September 2010
When the goods are despatched from one state to another other than by way of sale, since there is no tax on the output, one cannot take the credit of input tax. It is common to all States' VAT. But in some states, the law allows deductible Input tax to a certain extent and the balance is non-deductible. Usually, the non-deductible input tax is to the extent of the CST Rate with C-Form on the general goods i.e. now 2%. the balance is deductible. Say for eg. If a goods taxable at 12.5% is transferred from one state to another, then the input tax paid on those goods to the extent of 2% becomes non deductible and balance is deductible. I think it is same in Delhi also.
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