27 April 2014
A dealer in Hyderabad purchased goods worth 90 lakhs(excluding VAT) and manufactured finished goods worth 160 lakhs in december.
It received an order for the finished goods from its Bangalore BRANCH in January.
input VAT rate 12.5%
output VAT rate 4%
Compute the amount of Input tax credit available and Net VAT PAYABLE.
please solve and explain this
thanks
27 April 2014
Hello, For stock transfer there is no output VAT or CST levied. but the branch should issue form F. Also the input on the input materials used will have to be reversed by 2% as input credit to the extent of 2% is disallowed. You can use the below formula for reversal in case of part transfer.
total cerdit x (turnover of stock transfer/total turnover including stock transfer)
Regards, Santosh G Kalburgi Cost Accountant 9742022309
CAclubindia
