CA Yogesh (CA) (77 Points)
30 January 2011
According to my opinion, there is need to be restructure database for interest calculation of vat in the Part-I of Form of VAT 704, software takes amount already paid excluding interest.Whereas there should be amount of VAT plus Interest. Because there is a separate columns for VAT and Interest in Form 210.Are we eligible to pay interest on VAT,(which includes interest also)?
TAPAN DAS
(Exeve. Taxation)
(21 Points)
Replied 14 May 2011
we are manufacturing Detergents and selling the same for both intra andninter-state. The basic input of detergents are procured from outside the state except very few in which we avail Input Tax Credit. We would like to have clarification on the following.
“Whether the said input tax credit can be availed for both intra and inter-State sale” Sub.Rule-3 of Rule-11 and foot note in Annexure-II of VAT 201 say like this:-
Sub. Rule-3 of Rule-11 : c) In case, the sale of goods in the manner referred to clause (a) above, results in CST payable less than the corresponding input tax on the corresponding purchase of goods, the input tax creditable for the tax period shall be reversed by the amount calculated in the box provided in serial No.5 of Annexure-II in the Return.
d) In case the CST payable is equal to or more than the corresponding input tax as calculated as per provisions of clause (c), there shall be no reversal of Input Tax Credit.
Foot Note of Annexure-II: Manufacturer will calculate the proportionate inputs (goods) used in the manufacturing of goods sold in inter-State trade and calculate the purchase value of those inputs (goods) as well as the input tax.
It may be noted that our CST payable is much more than the input tax credit we avail.
We may be clarified the correct statutory provision.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
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