Vat very urgent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2012 DEAR SIR
THERE IS ONE REGISTERED DEALER CANCLLED THE TIN NO AS NO 31.03.2012.SO WHAT ABOUT THERE STOCK TREATMENTW, WHEN HE PAY THE VAT AMOUNT AND WHAT IS THE CIRCUMSTANCES FOR THAT. PLEASE REPLAY

RENGARAJ R.K

RENGARAJ R.K (Expert)
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17 July 2012 You have not mentioned your state of operation in the query. But i give below the general rule.

1) First of all find out the value of the closing stock
2) Whether it is taxable product or not?
3) If it is exempted, no botheration about vat payment.
4) Let us assume the value of closing stock is Rs.4,00,000.00 and your state registration for a vat dealer is Rs.5,00,000.00 in a year. In this case, the selling dealer has no liability even if he cancelled his TIN RC because the sale value in the year 2012-13 is below 5 lacs.

After 01.4.2012, he becomes URD (unregistered dealer) and only the buyer of the product is liable to pay the purchase tax and can set off.

Suresh Mittal

Suresh Mittal (Expert)
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17 July 2012 The dealer will have to pay the VAT on the stock mainly because of following two reasons:-
1. He has taken input against local purchases and the goods are not sold.
2. He has goods in stock which are purchased against C form and the condition attached is the purchase is for the purpose of resale, but due to cancellation of RC condition is not fulfilled.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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17 July 2012 Mr Mittal saab, The query is not explaining any thing. The person says, he is having a closing stock as on 31.03.12 and cancelled the RC. He never says that all his closing stock is out of ITC availed material or interstate purchases. The value of the closing stock, his state of query not available.

I also agree that even after closing, if the stocks are out of interstate purchase or input availed materials, then he has the liability. But we have to assume things. What to do?

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2012 sir my state is Maharashtra and all closing stock is local purchase