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Input vat reversal-mp vat act

Others 1279 views 2 replies

DHARMENDRA SHARMA

Senior staff

444 Points Joined February 2010

Dear All,

I have a query related to input vat reversal in Madhya Pradesh VAT Act. Actually,One of my client is a manufacturer and he is making Taxable as well as tax free goods.The problem is that the raw material is being used for making both type of goods but we are unable to account for them seprately.Should i reverse full VAT amount or there is any other way for this condition?? Please refer Section or Rule of Madhya Pradesh VAT Act. Prompt reply will be appreciated. Thanks in advance.

Replies (2)

niteshporwal

article assistant

63 Points Joined August 2013

Dear.,You should reverse the vat amount only to the portion of raw material used for manufacturig taxable goods only, not the portion of raw material used for tax free goods....

DHARMENDRA SHARMA

Senior staff

444 Points Joined February 2010

But the problem is that we can't bifucate how much quantity is being used in the production of tax free goods.Whether it can be reversed on the pro rata basis of tax free and taxable sales??Please answer with specific section reference or notification of MP VAT.