In Chattshgarh VAT Rate has been changed w.e.f 01.01.2010 from 4 to 5. My query is i have sold some material in Chattisgarh old rate i.e. 4% on 02.01.2010, now how shall i recover the short VAT charged. Shall I recover it through Debit note or Supplementry Invoice? I am a Manufacturing concern.

Plz advice

Pls advise in case of first seller (A, Delhi) & ultimate buyer(C, Delhi) are located in same state & first buyer (B, Punjab), who will buy goods from A and then sale the goods in transit by way of endorsement to C.

Can this transaction term as E-1 transaction, when A & C are located in same state.


Need urgent reply, if possible.

I have a question on calculation of Gross profit and effect of VAT Input, can you guide me please with an example given below.

E.g.: Cost of a product Rs.400
VAT Input @12.5% i.e. Rs.50

Selling Price Rs. 480
VAT Output @12.5% i.e. Rs.60

Please explain how VAT Input of Rs.50 reflect or effect in the Trading & profit & Loss A/C and what is my Gross Profit ?

Thank you for responding Advance.

Regards,
Shashi

From the point of a Software development company, can someone pls tell me the difference between 'sale of a software' and 'license of software'?

Pls tell me the relevant sections of the Act which define and distinguish these.

Thanks in advance.

Dear Deepak Agarwal Sir,

I thank you for your reply regarding input tax credit. You have rightly pointed out that input credit cannot be availed of in respect of any tax collected in excess by a supplier. But the supplier dealer cannot forfeit the amount he has collected in excess in the name of VAT .He has to pay the same to the government along with the tax at the rate applicable.

What i mean to say is the supplier who charges excess VAT on his sales by mistake has to pay the excess also to the government and he cannot forfeit the excess.

The reason for that is also very logical. Even in service tax ,the same logic applies.Tax collected in excess if not refunded to the customer cannot be retained by the tax collector and has to be paid along with the regular amountof tax. If forfeiture were allowed , then it would amount to making of profits in the name of tax collection.

Hence, firstly the excess should be refunded and if it isn't then it has to be paid into the govt. treasury but in any case he cannot keep the money for himself.

if i had purchased goods with 4% vat and sold it with 12.5% vat
what problems i and my debtors would face as per both income tax and sales tax.
(in such a case I am collecting a higher tax for the govt would that create a problem/scrutiny.)

pls suggest is way bill requried for goods despatchs from Delhi to Noida.

Can I use raod permit with use of Fluid beacuse some changes are doing ?

Plese help as soon as possible.

had a query relating to input tax credit - Suppose the seller has collected excess VAT from the dealer due to some calculation mistake , then can the dealer get credit for the entire amount of VAT paid or will he get credit on VAT amount excluding the excess?

If my query is not clear enough then here's an illustration:
Purchase Amt : :Rs.100
Vat @ 4% :Rs. 4
Vat actually collected by :Rs 4.3 supplier
Billtotal :Rs. 104.3

So in this case, can we claim Rs. 4.3 as input credit or can we claim just Rs.4????

Your reply is eagerly awaited. Please do reply.

Ankita Mundhada

I am not able to get the correct interpretaion of Rule 54D for Non Admissibility of Set off. Can any body tell me whether the dealer principally engaged in Job work are liable to get the set off of Consumables?