Balendra Parmar (Finance Manager) (199 Points)
20 January 2012Dear Sir,
We have utilized the vat credit on LPG fuel.For example we make purchases fuel Of Rs.100 VAT 15% applicable. Total payable Rs.115.We have reversed credit 4 % on 100. But department of sale tax charged reversal of credit on Rs.115.
The veiw of deparment is correct? please help to me.
Regards,
Balendra Parmar.
neelesh
(student)
(67 Points)
Replied 20 January 2012
the amount of tax credit in respect of a dealer shall be reduced by the amount of tax calculated at the rate of four per cent on the turnover of purchase
Turnover of purchase – s.2(32)
Means the aggregate of amount of purchase price paid or payable by the dealer in respect of any purchase of goods made by him during a given period after deducting the amount of purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller
purchase price paid or payable by the dealer in respect of any purchase of goods made by him does not include the tax amount paid by him so the department is wrong
CAclubindia
