19 July 2014
Dear Experts, A material purchased for a sale after some fabrication process in the factory. Whether VAT input credit availed (Taminadu vat ACT)on such raw materials need to be reversed if said materials were not sold and lying as a stock for more than 4 or 5 years.
VAT is payable only on sale of the goods and not for stock lying in the factory. The factory also can take eligible input credit for the processed products. Proportionate Reversal is to be made only for those finished products moved out of Tamilnadu either for sale or transfer. Otherwise No.
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