If the final products are transferred to another state as stock transfer or branch transfer, input credit will have TO BE REVERSED on PRO-RATA basis,which is in excess of 2%.In other words, in caseof goods sent on stock transfer/branch transfer out of state, 2% tax on inputs will become payable e.g.if tax paid on inputs is 12.5%,credit of 10.5% is available.
when CST is reduced to NIL, full credit of tax paid on inputs will be available i.e. inter state sales and stock transfers will be 'ZERO RATED' and 'not 'EXEMPT'.

I AM CONFUSE ABOUT THE LINE WRITTEN:-
"input credit will have TO BE REVERSED on PRO-RATA basis,which is in excess of 2%."
and again line written as :-
"In other words, in caseof goods sent on stock transfer/branch transfer out of state, 2% tax on inputs will become payable e.g.if tax paid on inputs is 12.5%,credit of 10.5% is available."

please any one can explain me??????

thanks in advance........
i am following V S DATEY (ca-final)
page no:814 26th edition..........

Sr,
It have been noticed during the audits that many of the dealer carry on to charge Vat to our clients at the time of sales even though they are not active dealer.
How can this be overcome or identified (Vat Input or refund will be a long process as in case if the client is in service sector)

What are the documents to be demanded from the supplier to confirm his Vat registration in a given date of invoice.
Please guide.

Sr,
During audits we find that many a times tin no. mentioned on invoice is not valid (As dealer is not found when the same tin no. is entered for verification on the related site) So is it that its a updation problem or the TIN no. is fake?? In this case whether the buyer should pay the vat amount as he can refuse to pay so because of invalid TIN no.(As per my knowledge) Plz explain in detail..

There are two entities X Pvt Ltd and Y LLP.
Both are the sister concern, where Y LLP is newly formed LLP.
Y LLP have purchased some fixed assets but the purchase invoices were given in the name of X Pvt Ltd by the supplier and input cedit on the same was availed by X Pvt Ltd.
As asset purchased for Y LLP they want to show fixed assets in thier accounts, how can we transfer assets from X Pvt Ltd to Y LLP & What are the tax implications?

Please tell me the input tax credit for the following transaction:-
Purchase
Soyabean @ Rs. 20,000/ Ton + 5% Tax (Rs 1,000)

After processing of soyabean we get 80% DOC (Tax Exempted) and 20% Oil (5% tax)

Sale
DOC @ Rs. 16,000 * 0.8 = 12,800 (56% of Revenue)(Tax = Rs. 0)
Oil @ Rs. 50,000 * 0.2 = 10,000 (44% of Revenue)(Tax = Rs. 500)

Whether Tax credit will be 20%, 44% or 100% of input tax.

I want to know what is the VAT % applicable for the paper tube in karnataka.

We have imported machineries from china and made contract wih the company that they will send their highly skilled professionals for the term of 1year for producion of finished goods ready to despatch from their machinery installed. MY Query is what are the taxes applicable on such contract? They will raise their bill with 17%vat in Dollars on us, Is this vat can be taken as credit or not? Please solve my query as it is urgent.Thanks & Regards.

Dear Colleagues
can any body clear me about
whether Vat/Sales Tax is attracted on Transfer of Business Assets when there is a conversion of Proprietorship Firm into Partnership Firm, pls give me some case law or section or rule reference
Thanks in anticipation

Pls let me know the rate of VAT applicable on sale of used machinery(like hydra mobile crain used for loading & unloading in transmission tower line business) in Maharashtra. is it 12.5% or 5%

also let me know what is the excise impect on same how to prepare invoice for same

your early reply will be highly solicited

Thanks & regards

what is e1 sales, please clarify.