2% itc reduction under gvat rules on ogs sale
This query is : Resolved
18 July 2014
We are registered dealer unad Gujarat VAT Act. We purchasing goods local and after manufacturing the same is sold out side the state. What is the METHO of calucation of REDUCTION of Input Tax Credit? Is there are more than one method? For Example we have purchase Goods worth Rs.100000 and VAT @ 5% paid on that Rs.5000. After processing the same is sold outside state for Rs.110000 and CST @2% collected on this Rs.2200. The question is
- What is our liability to pay tax?
- What is quantum of VAT credit reduced as
sale is out side the state?
- What is the method of ITC reduction?
- What is our liability to pay tax?
- What is quantum of VAT credit reduced as
sale is out side the state?
- What is the method of ITC reduction?
21 July 2014
Input Tax Credit (ITC) will have to be reversed @ 2% of taxable turnover of purchases within the state, of goods,for which tax credit is admissible, if the goods are either sold/ resold in the course of interstate trade and commerce or are used as input in the manufacture of goods, which are sold in the course of interstate trade and commerce.
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21 July 2014
Input Tax Credit (ITC) will have to be reversed @ 2% of taxable turnover of purchases within the state, of goods,for which tax credit is admissible, if the goods are either sold/ resold in the course of interstate trade and commerce or are used as input in the manufacture of goods, which are sold in the course of interstate trade and commerce.
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21 July 2014
I have given example. can you calculate the quantum of reduction.?
21 July 2014
ITC shall be reversed by 2% of Rs.110000 i.e.Rs.2200.
Credit available to us would be of Rs.2800.
CST Payable would be Rs.2200 which would be adjusted against VAT credit available to you.
Credit available to us would be of Rs.2800.
CST Payable would be Rs.2200 which would be adjusted against VAT credit available to you.
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