Input vat credit reverse procedure

VAT (Legacy) 5174 views 1 replies

Please can anyone let me know what is the formula to reverse input vat credit in case of stock transfer outside state under west bengal vat act....

Replies (1)

Dear Sir,

                 Formula for calculation for Vat input credit reverse is mostly same to all state in india .

that is calculate at basis of Sales and Vat creditable purchase ratio = A X B / C.

A = is vat amt .

B = Stock Stransfer amount

C= is the non taxable stock transfer out of state.

 

Exm.  Ram is manufactruing of Paint his Purchase of Raw Material Ass. Value is  100000  Vat  Tax is 4000.

Stock Transfer out of state is 10,00,000

Local Sales  50,000

Than Creditable Purchase is  = 50000/1050000 x 4000  = 190/- rupess only and Vat Disallowed by department  will be 3810/-


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