40% credit on exempt goods in vat
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 June 2017
Sir
Sports Goods are Vat exempt under UP Vat.
A trader have all bills of purchase made of such goods.
Now sports goods are taxable in GST @12%.
The trader do not have excise paid bills instead he has vat paid bills.
Do the trader entiled to input benefit @ 40% rule on stock in hand on appointed date of gst.
Pls explain in detail if possible
Sports Goods are Vat exempt under UP Vat.
A trader have all bills of purchase made of such goods.
Now sports goods are taxable in GST @12%.
The trader do not have excise paid bills instead he has vat paid bills.
Do the trader entiled to input benefit @ 40% rule on stock in hand on appointed date of gst.
Pls explain in detail if possible
Sagar Doshi
(Expert)
10 June 2017
Hi,
It is not possible to take deemed benefit of 40% of VAT paid under current regime, unless your product falls under MRP base valuation under said VAT Act for levy of VAT. It is suggested to request your distributor to take registration as First Stage dealer or Second Stage dealer, so he can issue the excise invoice on the stock you held as on appointed day.
If require any further clarification, may contact me on sagar.d0508@gmail.com
Thank you..
It is not possible to take deemed benefit of 40% of VAT paid under current regime, unless your product falls under MRP base valuation under said VAT Act for levy of VAT. It is suggested to request your distributor to take registration as First Stage dealer or Second Stage dealer, so he can issue the excise invoice on the stock you held as on appointed day.
If require any further clarification, may contact me on sagar.d0508@gmail.com
Thank you..
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