17 August 2012
Dear All Can we take input tax credit of Stock Transfer suppose that we have purchase goods form delhi registered dealer Rs 1000 + 5% vat and same was transfer out side of state can we take tax credit of such purchase?
17 August 2012
First you can take Input tax credit for the local purchase and reverse the ITC for the stock transfer value. There is a formula prescribed for reversing the ITC and you have to forego Input tax credit on percentage basis. Refer the particular section in DVAT Act.
CAclubindia
