we are manufacturing company in maharastra and we purchase raw material on ongoing basis and after making finished goods we transfer it with profit to other branch at delhi with f-form and and we don't now from which raw material it was produce how can i calculate the amount of retention for vat computation ?
1 Replies
Swati Panchal
(CA Job)
(58 Points)
Replied 29 March 2016
Hi,
As per rules, a proportionate ITC availed shall be reversed for stock transfer out to other states. This can be calculated as [(ITC taken)*(stock transfer out against F form)]/[(stock transfer out against F form)+(Local Sales (gross value))+(CST Sales(gross value))+(Export)]
Hence, out of total ITC taken in the tax period proportionate tax credit on stock transfer shall be reversed.
Thanks,
Swati
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