Compounded Rate of Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2010 Dear Sir,

1. I would like to know whether shall we collect tax from the customers while we were in Compounding System of VAT.

2. If we are migrating from Compounding System of Tax to regular ITC option, can we take the Tax Credit on the purchases madeor the existing stock value.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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19 April 2010 I will reply your above queries in the context of provisions in the sate of Assam.

1. In Assam the retriction on collection of taxes by such dealers have been omitted. hence tax can be cooected.

2. There is no provision for providing ITC on stock, as such goods were not purchased agt Tax Invoices.