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Input tax credit

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We have a branch in M.P. we had purchased goods in mp and paid vat. Then we branch transfer the goods under FORM F to our Gujrat Branch and gujrat sol godds further by adding guj vat. Now the gujrat branch can claim input tax credit of VAT paid in mp.
Replies (6)
No, but MP branch can claim credit for Vat on purchases exceeding 4%.

I agree with Sunil. You don't pay CST at the time of branch transfer and moreover, in no case, CST input credit can be taken from Gujarat branch. If your problem is to adjust the input VAT paid in MP and if you have no other sales from MP, then only option is to go for refund of input VAT in MP.

how should i claim refund in mp

 

I am not exactly aware of procedure to claim refund in MP because it changes from state to state. Refer Chapter VII - Refund for more details: https://mpsc.mp.nic.in/comtaxab/Documents/VAT_Act_10_Aug_2010.pdf. I'm not sure whether the same procedure is still valid.

Request anyone having knowledge about it to respond.

 I think Mr Gogkale's rate has to be 2%.When you decalre such stock transfers in returns there will be excess input. Such excess can be adjusted against any other VAT payable amounts or refund can be claimed. As Ms Poornima said it differs in each state and also years. You can contact the local VAT office who will guide you......mjk 

Though CST rate is 2% the credit is available for VAT above 4%.


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