Karnataka vat

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Prakash T c

Executive

194 Points Joined March 2011

HI,

We need some clarification on the Reversal fo ITC under KARNATAKA VAT. We are doing business in karnataka as Trader and,

- transfering goods to own branches in other states against form-F,

- transferring goods to own branches in Karnataka state,

- Vat sales for local register delears,

- Cst sales for register and unregistered delears other states @ full cst rates or against form-C.

what's procedurals to be followed for reversal of ITC and what rate of reversal will be applied. Please give you best opinion on all above cases. Also we shall be grateful to you, if any one of you can provide me a copy of Circular / Notification issued by KARNATAKA VAT Department in respect of Reversal Rates.

Further the Calculation for turnover of sales shall be taken in gross sales or net sales. i.e net sales = basic value plus tax. Or gross sales = basic value

Replies (2)

praveen

Chartered Accountant

6971 Points Joined September 2007

Input Tax has to reversed based on the formula present in the KVAT rules read with the KVAT Act.2003.

Such amount should be written off as expenses.

Be careful there something about 6 months reconciliation which neither the VAT departments says how to work it out nor the forms have anything to do with it.

For any enquiries please message me at mrpraveen @ live.com