saurabh (entreprenuer) (28 Points)
08 September 2013The querry is regarding commodity having 1% VAT (Eg. Gold/SIlver) within Delhi say Rs. 100000/- + Vat Rs.1000
The above goods are stock transfered to Ahmedabad Branch Rs. 100000
What is the position of ITC Rs. 1000?
a) Is ITC Refundable from Department ?
b) Is ITC adjustable on any other sale ?
c) is ITC reversable on stock transfer ?
d) What is the percentage of reversal ?
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 09 September 2013
Generally,in all states,in such cases ITC upto 2% is to be reversed. As tax payable is 1%,with or without 'C' form the state is entitled to 1% CST in any case. Hence,1% VAT paid on purchases and claimed in the returns has to be reversed.......mjk
Mohammad Avesh
(Sr Officer (F&A))
(48 Points)
Replied 28 September 2013
itc would have to be disallowed input vat credit in next return, interbranch goods transfered may be done as tax free against f form...
CAclubindia
