Vat on goods thrown away

VAT can be Deposited only when it is collected ..

In the Instant case the obsolete stock is not sold and hence the VAT is not colllected and so cannot be deposited .

Your treatment of Debiting the Profit and Loss A/c for goods thrown away is Correct .

Ok..

But VAT is required to be deposited in case of self consumption.... Would'nt the case be same here..??

Originally posted by : Harshal
	VAT can be Deposited only when it is collected .. In the Instant case the obsolete stock is not sold and hence the VAT is not colllected and so cannot be deposited . Your treatment of Debiting the Profit and Loss A/c for goods thrown away is Correct .   Ok..

Dear Sanchit , you have not consumed the goods .

You have thrown the goods away 

So , no VAT to be colected and deposited .

Ok ...

VAT is applicable only there is any value addition at the time of sale. If you are not making any sale , VAT is not applicable.

hello everybody,  i would like to add main point that no vat liability is there as there is no sales, but he has to revert the input tax credit taken for the goods which is not sold but disposed by way other than sales

I  strongly agree with  Mr. Harshal

Input Tax reversal is applicable only for exempted goods and goods send out side the state by way of stock transfer. Here nothing barring you to take the credit. No need for reversal of duty like Central Excise Law.