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CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)

05 June 2009

DEAR STUDENTS

I HAVE TAKEN 5 CLASSES ON VAT FOR IPCC STUDENTS. IN LAST ONE I HAVE POSTED 50 QUESTIONS COVERING ALL THE AREAS OF VAT.

I THINK YOU HAVE GONE THROUGH MY CLASSES AND QUESTIONS VERY WELL AND ALSO TRIED TO UNDERSTAND THIS COMPLEX SUBJECT.

NOW TILL TOMORROW 5 PM POST YOUR CONFUSIONS, QUERIES ETC.ON VAT WHICH I WILL REPLY ON SUNDAY.

- WITH BEST WISHES

CA SUDHIR HALAKHANDI

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44 Replies

The Dude (Specialist- Finance) (303 Points)
Replied 06 June 2009

Sir,

What are the mandatory documents prescribed by VAT rules of India? Is the VAT Invoice enough?

RAVI JAIN (STUDENT) (30 Points)
Replied 06 June 2009

If for a dealer the input credit is continuously in excess of output credit then what will happen to this excess input credti becasue the exporters are entitled to get refund but the dealer under reference is not a exporter.

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 06 June 2009

Whether VAT is applicable on sales of FLATS by builder

CA. Dashrath Maheshwari (TaXpert) (15090 Points)
Replied 06 June 2009

If a company have:

Purchases: @ 4%vat = 100000, @ 12.5%VAT = 50000, @ 2%CST = 20000, Import = 15000, @ 1%TOT = 5000

Sales: @ 4%VAT = 170000, @ 2%CST = 5000, Export = 10000

apart from above, there are Branch Transfer of Rs. 30000 in Value

What is the VAT amount company has to pay?

Is there any case/notification/circular in this regard with respect to chemical industry?

Arun Mahajan (Accountant) (36 Points)
Replied 07 June 2009

Sir

Tea Purchases 1,00,000 @ 12.5% VAT. Self consumed at shop cost 4,000. We can claim Input VAT for self consumed goods?

Purchased goods worth Rs 8,000 damaged not saleable and destroyed. Can we claim input VAT of these goods? What adjustment need to do.

Purchased goods worth Rs 6,000 damaged and scrap value 1,000. Can we claim input VAT of these goods? What adjustment need to do.

Tea vending machine purchase out of state cost 11,000 plus CST. Sale price 12,000 plus 12.5% output VAT. Instead of selling we decide to install machine on rent say Rs 500 per month and take security from party equal to sale value of machine. So no output VAT payable on security. Machine is our property and we can take back any time and security will be refunded. On rent portion VAT will be applicable or service tax will be applicable. If service tax will applicable our total rent collection is just Rs 1,00,000 in a year and didn't come under service tax.

In above case any change in your opinion if instead of taking rent we decide to depreciate machine value 20% every year and deduct from security?

Thanks for your reply

(Guest)

EVERY THING ABOUT VAT HOW IT IS APPLICABLE WHAT IS THE RATE IN ALL STATES

HOW TO FILE THE RETURNED . THROUGH NET AS WELL AS MANUALLY

WHAT IS CST (INCLUDING EVERY THING APPLY TO FILE RETURNED )

HOW TO DONE ASSESSMENTS

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)
Replied 08 June 2009

I need some more questions to judge the response from the students which is not coming so I am extending the time for reply to tomorrow morning. If students are not responding than my exercise was futile.

I will start my service tax classes only after judging the response from the studnets.

- CA SUDHIR HALAKHANDI

sanjeev kumar sinha (AGM FINANCE) (23 Points)
Replied 08 June 2009

Dear All,

I have two questions relating to VAT on Franchise Fee received by our Company.

1. We charges 4% DVAT on Franchise Fee received on monthly basis when the Franchise agreement executed in Delhi. I want to Know the taxibility of VAT on Franchise agreement executed outside Delhi but billed from Delhi.

2. Whether we are liable to pay VAT on Initial Membership Fee (One time Non refundable fee) charged prior to execution of Franchise Agreement.

Thanks & Regrds

Sanjeev Kr. Sinha

surendra (Article assistances) (22 Points)
Replied 08 June 2009

Sir,

company purchased and also received good in january 2009 but purchase was not booked because bill is not avialable. company received bill in April 2009 (bill date january -2009) but company did not made any provision on 31 march 2009. company booked this bill in April 2009 and taken input credit. is it valid ?

Gaurav Arya (student) (1902 Points)
Replied 08 June 2009

dear sir

Is Input credit is also available on Vat paid on Non Trading Goods?

Venkatesh (Financial Data Analyst Tax Planner Insurance Advisor) (192 Points)
Replied 08 June 2009

Sir,

1. A Mfg company has input purchases of both 4% and 12.5% and the 12.5% goods are only materials required for manufacutre of goods, whereas all the sales are done at 4%.

My question is Can input credit taken of 12.5% also ?

2. The same company also has branch transfers and on what basis will the output calculation been done for having input credits of both 4% and 12.5% ?

Sarika (Unit head- MIS) (37 Points)
Replied 08 June 2009

Hi,

Would you be able to advice on VAT applicable in Russia for all imports. Especially for IT services which are being offshored in India is also fall under purview of Russian VAT. Need to understand the accounting entry & how invoicing should be done whether it should be with VAT or without VAT. The responsibility to deduct VAT & pay to russian govt is with client.

(Guest)

WEA

abhinaba (service) (37 Points)
Replied 08 June 2009

Being a power generating company, spares for machinery and raw material coal is purchased from parties, who charge vat on their invoice,raised to us. Please specify reason of non availing of credit of this input vat by the power generating company.