09 July 2014
Dear experts,
plz help me understanding the concept of Reverse Credit in VAT return form..??
In what circumstances, Reverse credit situation arises??
waiting for your immediate replies!!
Thanks in advance!!
Reverse credit in VAT is used for the following purpose.
When ITC is claimed on a wrong input which is not in relation to your business.
When stocks are transferred or moved out of the state after availing ITC, based on formula the availed credit will have to be reveresed. Which state the query relates to?
15 July 2014
ITC to be reversed it material sent to outside state to agent or branch then you have to reverse @ 4% ITC. in some states if material on which ITC is availed and sold in course of interstate sale then also ITC to be reversed, you must refer ur state VAT act
CAclubindia
