Input vat restriction on stock transfer

We are manufacturers in Andhra Pradesh. we are importing raw material  alwell as local purchases.

At the same time we are doing CST Sales, VAT sales, and Stock Transfers. In the APVAT assessment time CTO issued show cause notice to restrict input vat credit as per AP VAT act.

1)I have one doubt that we are importing raw material.On imports there is no vat input credit. So why should we restrict the input vat Credit (ITC)? is there any judgement ? If anybody knows please suggest me. It is more helpful for us.



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In your case there is no input reversal as you have mentioned you have only import purchases. As i know in DVAT if we made purchase (local) for stock transfer to our same branch but outside state like delhi to punjab then we have to reverse 2% input amount as reversal.

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Finance Incharge

in case stock transfer of finished goods you should make this below calculation while u r taking the input credit

non taxable turnover/taxable turnover *vat inout you have to propotionate like this.



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