Hi there,
if in one location sale and stock transfer is happneing together then VAT input credit can not claim @ 100% as we have to reverse input credit amount according to stock transfer % from the total output amount. is there any thing which should be more clear?
stock trafered in case of VAT input is 4%
You can claim set-off on taxable purchase if stock transfer within state. e.g. if purchase from Branch A and transfer for sale to branch B set off can claim because technically looks into matter we will see that at the time of return filing we have to merge the data available regarding transactions appeared during the period. You have to disclose only net amount transfer from one branch to another branch wheter sale or purchase.
Except: when branch transfer sale from one state to another state, set off available for that purchased material which have send to another state will be reduced @ 3% on net branch transfer - Sale
(Explain: Net Branch transfer sale means B.T. Sales - B.T. Purchase (Excluding Vat/Cst) amount should be positive)
Interstate Branch transferee required to issue form F to transferer
Please advice me about Vat Input reversal
CCI
Pro
CAclubindia
