15 January 2010
For interstate purchases and stock transfer's no input credit is allowed. So only for local purchases credit can be taken for payment of output tax. So inter state purchases tax forms part of cost of goods. Here u said Rs 48 only which is local or inter state is not mentioned. Assuming its from local purchase whole amout can be taken subject to the bill is for trders only(ie. not for ultimate customer)
15 January 2010
No sir, as per Vat Act, trader has to reverse the prop. amount of input credit which is attributable to stock transfer outsife state. I want to know that amount which would be reversed.
16 January 2010
Ok. So far interstate purchases & stock transfer does not allow input tax I think you are asking for interstate transfer of goods purchased locally, isn't it? From the quetion you have purchased 1200 locally and suppose all the stock transfer is from local purchase the amount of reversal from input is as follows. (48/1200)*700 =28. ok.
CAclubindia
