DVAT Credit on Purchase

The new amendment states that input credit can be taken only to the extent of goods sold, so in this case, the quantity of goods sold is 2000.

Input credit that can be availed will be only to the extent of ouput quantity/quantity sold. So basically, for 10000 goods purchaes, total VAT was 5000, that means Rs.0.5 per unit.

So input VAT available will be 2000 * 0.5 = 1000.

Sir,

As per notification Dt. 06.01.2010 [F.14(16)/LA-2009/LJ/10/LC LAW/1] of Sales Tax, we can not claim Tax Input on closing Stock so how will we show the purhcase & tax input in Sales Tax Return

For. Eg.

                                                         Taxable Amount               Vat                  Total

Purchase           10000units         1,00,000.00                   5000.00          105000.00

Sales                 2000units           30,000.00                      1,500.00             31500

What amount we can claim as Tax Input, It is total Rs. 5000  or Only on 2000 units i.e. Rs. (2000 * 10) @ 5% ..... Rs. 1000

THANKING YOU

YOUR'S FAITHFULLY

MANOJ KUMAR SAXENA