28 October 2011
A dealer transferred goods to a consignor for sale ,consignor after adding some commission sold the goods .now as the dealer even though paid vat on attaining goods cannot avail credit…and the consignor has to pay output tax on the sold goods .So both cannot be adjusted …could someone suggest a provision in tat case
28 October 2011
Mr. Phaniram, There is no solution to your problem.The consignor ,in any case has to pay output tax on his sale.The consignee could have retreived a part of VAT paid on purchases if he had sold his goods to the consignor against 'C' form charging 2% CST.Then he could have claimed backthe excess of input(i.e.VAT paid on purchases-CST) in his returns.In future you can try this method.
28 October 2011
Mr phaniram, the vat payable can be adjusted with the Purchase Credit what you are having in your Books, like that your consignor also can avail. - Sundaram Kumar
CAclubindia
