Mvat retention

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 Purchased Packing Materials:
Packing Material Rs.5,00,000/-
Add: VAT @ 5% Rs. 25,000/-
Total Rs.5,25,000/-

Total Sales Rs.60,00,000/-
F Form Sales included in above Rs. 30,00,000/-
12.5% Sales Rs. 30,00,000/-
Add: VAT @ 12.5% Rs. 3,75,000/-

Output VAT Rs. 3,75,000/-
Input VAT for Setoff ???????
Retention ???????

Please guide with Calculation...

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

19 August 2013
Input Vat taken on F- Form sales(Depot Transfer)should be reversed by 2%

In present your present case

Tax liability would be

Out Vat at 12.5% of Normal Sales 375000
less Input Vat 20000/-
(12500+12500/0.05*(0.05-0.02)
Tax Required to be paid 355000/-

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2013 But as per my knowledge its 4% and not 2%

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

19 August 2013

The amount of the tax credit shall be reduced by 2% of the purchase price (1% in case of bullion) if the goods or goods manufactured out of such goods are to be exported from Delhi by way of transfer to a

(i) non-resident consignment agent; or
(ii) non-resident branch of the dealer;

For better understanding please check your State Vat Rules

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