The querry is regarding commodity having 1% VAT (Eg. Gold/SIlver) within Delhi say Rs. 100000/- + Vat Rs.1000
The above goods are stock transfered to Ahmedabad Branch Rs. 100000
What is the position of ITC Rs. 1000?
a) Is ITC Refundable from Department ?
b) Is ITC adjustable on any other sale ?
c) is ITC reversable on stock transfer ?
d) What is the percentage of reversal ?
Generally,in all states,in such cases ITC upto 2% is to be reversed. As tax payable is 1%,with or without 'C' form the state is entitled to 1% CST in any case. Hence,1% VAT paid on purchases and claimed in the returns has to be reversed.......mjk
itc would have to be disallowed input vat credit in next return, interbranch goods transfered may be done as tax free against f form...
CAclubindia
