Vat Concepts

Page no : 2

pankaj sharma (industrial training) (24 Points)
Replied 16 February 2008

Hi, I want to know that if there is VAT in one state and Sales Tax in other can credit be claimed in that aspect?

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ravindra kumar yadav (Accountant) (32 Points)
Replied 20 February 2008

vat

Narendra Kumar (Accountant) (21 Points)
Replied 01 March 2008

Hi everybody,

I am in critial position as lakhs of amt. paid as VAT is going to be lost.

I need your help on Uttranchal Vat Act (now called Utrrakhand Vat Act) as the act doesn't explain the following: -
1. Availability of VAT Input on Electrical Installation e.g. Transformer, Power Cables, MCB, VCB, Switches & Boards for plant (a) when these items capitalized (say capital goods) (b) When these items are used for Repairing purpose.
2. Availability of VAT input on Spare Parts & Accessories and other Fabrication work( Fabrication consits MS angles, Channals, Welding Rods etc.) use in repairing of Plant & Machinery.
3. How to input credit be calculated when (a) about 70-80% goods manufactured sold as stock transfer to our distribution hubs in other states and remaining portion we sell it on 1% CST, however, most of our purchases consit 4% VAT. To how much extent we are eligible for VAT input (i mean to say if we are paying 4% & 12.5% vat on purchases, is Vat paid 4% eligible for input agst. stock transfer??).
4. Vat input is available on packing material. But nobody knows to how much extent it is eligible for input credit. (e.g. if we are paying 12.5% vat on packing material, is the full amt. of 12.5% is eligible for setoff??)

Please help me guys with this as a huge amt. of VAT is being paid by us

shwetha (ARTICLESHIP-CA) (22 Points)
Replied 22 March 2008

TAMILNADU

shwetha (ARTICLESHIP-CA) (22 Points)
Replied 22 March 2008

TAMILNADU

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Jiwan singh (service) (393 Points)
Replied 20 February 2009

1. Availability of VAT Input on Electrical Installation e.g. Transformer, Power Cables, MCB, VCB, Switches & Boards for plant (a) when these items capitalized (say capital goods) (b) When these items are used for Repairing purpose.

Ans :- Capital goods means only Plant & machinery,pollution control equipment,quality control equipment,laboratory equipment . you can only take itc on above capital goods

2. Availability of VAT input on Spare Parts & Accessories and other Fabrication work( Fabrication consits MS angles, Channals, Welding Rods etc.) use in repairing of Plant & Machinery.

Ans :- You can take itc of repair on machinery for next two year in sept. each (two equel installment)

3. How to input credit be calculated when (a) about 70-80% goods manufactured sold as stock transfer to our distribution hubs in other states and remaining portion we sell it on 1% CST, however, most of our purchases consit 4% VAT. To how much extent we are eligible for VAT input (i mean to say if we are paying 4% & 12.5% vat on purchases, is Vat paid 4% eligible for input agst. stock transfer??).

Ans :- itc take as following example :-

Sale – interstate 500

Export 700

Local 200

Stock trfd. 400

Total 1800

Itc available 500

Perportion of stock trfd. 500 *400/1800 = 111

Excess of 4% = 500 – 5 = 495 itc taken

4. Vat input is available on packing material. But nobody knows to how much extent it is eligible for input credit. (e.g. if we are paying 12.5% vat on packing material, is the full amt. of 12.5% is eligible for setoff??)

Ans :- You can full set off agst.itc on packing material . in the case of stock transfer you can set off on proportion basic .

Please help me guys with this as a huge amt. of VAT is being paid by us