We have made a purchase of a Raw Material during last month for using it in our manufacturing process. But it was not used due to some internal reason and then our management proposes to sell to the same dealer as scrap. We have availed Input VAT Credit for the purchase.
In the above transaction, vat credit reversal or it is ok if we charge VAT on the Scrap Transaction Value.
And any statutory compliance required for this transaction wrt tnvat registration certificate.
Sorry
Dear Sir,
Strictly speaking you have to reverse the input claimed earlier as material is not used for production,Further collect VAT on sale of scrap.
Else considering it as used for production just collect VAT on sale of scrap material at respective rate.
Hope i have answered your question.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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