CA Sandeep Singh (Chartered Accountant) (137 Points)
22 April 2010Sir,
As per notification Dt. 06.01.2010 [F.14(16)/LA-2009/LJ/10/LC LAW/1] of Sales Tax, we can not claim Tax Input on closing Stock so how will we show the purhcase & tax input in Sales Tax Return
For. Eg.
Taxable Amount Vat Total
Purchase 10000units 1,00,000.00 5000.00 105000.00
Sales 2000units 30,000.00 1,500.00 31500
What amount we can claim as Tax Input, It is total Rs. 5000 or Only on 2000 units i.e. Rs. (2000 * 10) @ 5% ..... Rs. 1000
Please suggest me
Thanks in Advance
Sandeep
Dhruv
(Chartered Accountant)
(308 Points)
Replied 22 April 2010
The new amendment states that input credit can be taken only to the extent of goods sold, so in this case, the quantity of goods sold is 2000.
Input credit that can be availed will be only to the extent of ouput quantity/quantity sold. So basically, for 10000 goods purchaes, total VAT was 5000, that means Rs.0.5 per unit.
So input VAT available will be 2000 * 0.5 = 1000.
MANOJ SAXENA
(SR. ACCOUNTS OFFICER)
(24 Points)
Replied 23 April 2010
Sir,
As per notification Dt. 06.01.2010 [F.14(16)/LA-2009/LJ/10/LC LAW/1] of Sales Tax, we can not claim Tax Input on closing Stock so how will we show the purhcase & tax input in Sales Tax Return
For. Eg.
Taxable Amount Vat Total
Purchase 10000units 1,00,000.00 5000.00 105000.00
Sales 2000units 30,000.00 1,500.00 31500
What amount we can claim as Tax Input, It is total Rs. 5000 or Only on 2000 units i.e. Rs. (2000 * 10) @ 5% ..... Rs. 1000
THANKING YOU
YOUR'S FAITHFULLY
MANOJ KUMAR SAXENA
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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