Provision stores Vat Calculations

in absence of division of goods at diff rates, the maximum rate would be applicable.

if the dealer has opted for composition scheme then such cases emerge, then he can not take input credit but pay a concessional rate of tax ( notional) as per the respective state Vat rules. 

HI Sharma,

Thanks for the responce

Need to know is any cluse that specify under KVAT ACT to take out put tax based on the current month purchase transactions like

for Example

the above output tax calculated based on percentage of purchase made during the month

kindly help me to come out of issue

Regards

Umesh

if you say that there is no opening stock and closing stock during these transactions then this will work excellent, but in case of stock in hand , FIFO would apply 

My Quary is that Need to know is any clause that specify under KVAT ACT to take out put tax based on the current month purchase transactions like

and whether this way of calculations  is accepetable udner Vat Act ; if yes need clause under the act

regards

Umesh

there is no such specified details, but one has to maintain stocks inventory for all vat inputs and outputs, alongwith inpout credit and output tax register. 

as your details looks like goods sold immediately after the purchase, hence such accounts can not be questions, but breaking of consignment in parts and mixing with other consignments ..............there u may need the old stock and FIFO system.

say u brought 10 bags of sugar and sold 10 bags of sugar making the stock nil , then again u got 5 bags of sugar and sold again 5 bags of sugar, means u r not breaking any consignment, but if u sale by retail then u have to maintain stock register, and in this process u can not say that there is no "old stock"

under provision of old stock u have to consider opening balance of stock , their input credit balance, and in First In First Out system the store has to sell the old items 1st. 

here the value addition of 22% may get varied if u go in depth of stock register. 

Understand ur point of View and its acceptabe. But how other people doing there vat returns. some clarification or way out should be there na in the vat act

If some scrutiny happance what was our explantion to the department peoples under the VAT Rules

regards

Umesh  

whenever the department feels that the revenue is getting leaked, they visit the place, take inventory of goods at random and match cash register. the diff with stock and cash book is taken in account with maximum tax rate and fines. 

HI

In Continueation to the above how other dealers calculating Vat Under KVAT Act

regards

Umesh