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VAT input credit

Abhishek ratan maharao (B.Com & CA FINAL) (116 Points)

18 September 2010

IS VAT INPUT CREDIT AVAILABLE TO FOLLOWING?

WHEN PURCHASE FROM OTHER STATES IS MADE AND SALES IN LOCAL AREA (MAHARASHTRA).

WHEN PURCHASE FROM OTHER STATES AND SALES IN OTHER STATES.

WHEN PURCHASE FROM LOCAL AREA (MAHARASHTRA) AND SALES IN OTHER STATES.

ALSO PLEASE CLEAR THE CONCEPT ABOUT INTER STATES & INTRA STATES STOCK TRANSFER TO ENTITY OWN BRANCH / HEAD OFFICE

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13 Replies

J.MEENAKSHI SOWBARNIKA (Chartered Accountant) (92 Points)
Replied 18 September 2010

MR.ABHISHEK,

BE CLEAR THAT INPUT VAT CREDIT CAN NEVER BE UTILISED IF PURCHASES ARE MADE FROM OTHER STATES(INTER -STATE PURCHASES).BECAUSE UNLIKE CST, VAT IS LEVIED AND COLLECTED BY THE RESPECTIVE STATE.FOR EG:IF PURCHASES ARE MADE FROM ANDRA PRADESH AND ARE SOLD AT TAMIL NADU YOU CANNOT AVAIL THE INPUT TAX CREDIT.BUT THE CST PAID BY YOU CAN BE ADJUSTED AGAINST THE CST PAYABLE BY YOU.LIKEWISE THE EXCESS INPUT VAT CREDIT CAN ALSO BE ADJUSTED AGAINST CST PAYABLE

Abhishek ratan maharao (B.Com & CA FINAL) (116 Points)
Replied 18 September 2010

what about stock transfer?

Abhishek ratan maharao (B.Com & CA FINAL) (116 Points)
Replied 18 September 2010

WHEN PURCHASE FROM LOCAL AREA (MAHARASHTRA) AND SALES IN OTHER STATES. input vat credit will be available. plz reply

Ravi Prasad (Self employed) (148 Points)
Replied 25 September 2010

When the goods are purchased in Maharastra and the input tax is paid on the same and if the same goods are sold to some dealer as Interstate sales, then Input tax rebate is available. But if the goods sold interstate is exempted goods and raw materials are purchased in Maharastra paying input tax, then rebate is not available.

Stock transfer - Interstate - to his branches or agents - then there is no CST and hence technically no Input tax rebate. - However, only the tax amount at 2% or tax rate which ever is lower paid on the inputs are made non-deductible and the balance tax is allowed as rebate. Please refer to the Sections in your Act.

Liakath Ali (Accountant) (29 Points)
Replied 07 October 2010

WHEN PURCHASE FROM LOCAL AREA @ 4% Vat (Tamilnadu) AND SALES also made in Local input vat credit will be available. plz reply

(Guest)

input credit is avaible only when we purchased goods within state .and we can adjust that input both in local sales and interstate sales

The things to be keep in mind..

1) The invoice should be Vat invoice no Retail invoice (you hve to show Vat invoice at the time of your sale tax assessment)

2)the purchase from outside city is not allowed to take credit

3)For Stock transfer outside the city you hve to issue F form and u cant charge Tax on Stock Transfer ,,So No concept of Input tax.

SANJAY THAKOR (MANAGER-FINANCE) (68 Points)
Replied 24 October 2010

Stock transfer means the transfer of goods from a branch of a company in one state to it's own branch in any other state.

For Eg. If a branch of Maharahstra transfer the goods to the branch of Gujarat then it is a stock transfer. CST will be NIL in case of branch / stock transfer.

Receiving branch (Gujarat) has to issue Form -F on a monthly basis to Maharshtra branch.

kaleem Ashraf (student) (21 Points)
Replied 30 January 2011

if i purchase the iron and steel materials on 2% CST from interstate such as Andra Pradesh and i sell the finished goods to interstate on 2% CST such as kerala and i fabricate that material in karnataka than shall we have to pay the tax to karnataka goverment other than CST 2% pls replay.

Harkesh (Accounts Manager) (58 Points)
Replied 31 January 2011

Plz help me urgent.

I taken credit of input tax twice.what should i do??

SANJAY THAKOR (MANAGER-FINANCE) (68 Points)
Replied 01 February 2011

From the details it seems you are located at Karnataka.

You have purchase the iron and steel materials from Andhra Pradesh by paying CST @ 2%, this is not available for input tax credit since it is a interstate levy.

Further You have made interstate sale at Kerala by levying 2% CST. That means you have collected 2% CST, which you have to pay it back to Govt. Since CST administration is with local Govt you have to pay this CST 2% to Karnataka Govt.

Input Tax Credit is available only if you purchase the goods from local dealer i.e. with in Karnataka state. CST is not available for input tax credit.

Uma Maheswari (Manager) (27 Points)
Replied 27 June 2011

I wish to know about the Maharastra VAT Credit Rule for the following situation:

Our organisation which yields 75% of total turnover from services and balance from sale of trading goods

for which MVAT entitlement arises.

We have been advised by VAT consultants that we could not take credit on VAT item invovled purchases like printing & stationery ,etc and credit can be availed only in case of purchase of trading goods alone .

Can anybody provide me the Credit Rule number / Circular /Notification stating the same

ROHIT CHOUDHARY (ARTICEL) (22 Points)
Replied 29 February 2016

If i am a dealer of Maharashtra purchase goods from Karntaka and used the same in the Karnataka than am i eligible for Input Tax Credit or Not??

Please guide me in this regard....

Thanks and Regards,

Rohit Choudhary

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 01 March 2016

As you are a dealer of Maharashtra that means registered under MVAT and purchased goods from Karnataka...... it is inter-state purchase...so input tax credit is not available for the same.