Sir, please advise a jewellery purchase gold of 24carat and he have to sell in 22 carat what he will do?

Sir, A jewellery Purchase gold of 24carat and as he has to sell the gold by making ornament ,he cannot sell it for 24 carat,but in 22 carat. Now in purchase bill he purchase Gold for 24crt and for sell 22carat ,whether he can avail ITC and what will be the effect?
Replies (8)

"A jewellery Purchase gold of 24carat and as he has to sell the gold by making ornament......"

He cannot avail ITC when excise paid is 1%. but can avail ITC when excise paid is 12.5%

Read more: https://www.cbec.gov.in/resources//htdocs-cbec/press-release/clarfn-budget-jewel-industry.pdf;jsessionid=C303C31E9F5F9261E813DFC15185A32B

 

Sir,

  Jeweller purchase gold from local Trader i.e intra state Purchase whose turnover is less than 6crore.So no excise is charged on it, and the jeweller sell the ornament after preparation in local seller. In the purchase bill of 24carat Gold,the trader does not charge Excise ,but charges VAT 1%.

        So in this case he can claim ITC.

Sir,

 Your site is not functioning.

 
Jeweller purchase gold from local Trader i.e intra state Purchase whose turnover is less than 6crore.So no excise is charged on it, and the jeweller sell the ornament after preparation in local seller. In the purchase bill of 24carat Gold,the trader does not charge Excise ,but charges VAT 1%.
        So in this case he can claim ITC.

Which ITC to be claimed? When nothing paid........

Sir,

Actually at the time of purchase of Gold  VAT paid 1%, and when the jeweller sell the same gold in finished good he will charge vat 1%, so as the Trader brought the Gold by VAT 1% payment, and sell the same by charging VAT 1%.So here whether he cam claim ITC.?

"Actually at the time of purchase of Gold  VAT paid 1%,"

Is the VAT paid under composition scheme? or normal rate? The rate refer to schedule of VAT department of your state

Sir,

 I am not sure the trader from whom gold is purchase who charge Vat 1% is either fall in composition Scheme or on regular ?But generally trader in our state charge in normal rate?

So sir do you thing ITC can be claim if Vat is charge in normal rate.

" So sir do you thing ITC can be claim if Vat is charge in normal rate.?"            Yes. ITC cannot be availed when the VAT is charged at composition rate. 

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