Vat treatment in case of subsidy

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Vijeta Nathani (Querist)
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28 March 2014 I have a query how to calculate VAT in case of Subsidy.
For example, Mr.A is purchasing goods worth rs.1,00,000 by paying CST. He has received subsidy from state government for the said transaction for rs.30,000. He sells goods to intra state registered dealer. Whether he should charge VAT on Rs.1,00,000 and then give credit note for the subsidized amount i.e. Rs.30,000. Or he can Net off the amount and can charge VAT on Rs.70,000(1,00,000-30,000)?

Please, Assist for the same.

Regards,
Vijeta

Vijeta Nathani

Vijeta Nathani (Querist)
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01 April 2014 Thanks for Support. I have got the answer from casansaar.com.