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Vat on stock transfer

Rohit (CA-Final) (1485 Points)

04 September 2012

If we transfer Stock from one Branch to another then Government Deduct 2% Input VAT Credit.

But Suppose if we are transefering an exempted good and we do not have any Input Credit in Balalnce then will the above rule apply or not ?

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3 Replies

Vikky Vasvani (Executive -Accounts & Finance) (321 Points)
Replied 04 September 2012

Govt. is disallowing Input Due to You are transfering goods to another state.. it seems to revenue loss to govt. cuase you are taking input from govt. but output is going to that state in which state you stransfer the goods...........

Since Goods is Already Exempted.. you are not required to Disallowed any VAT.......

in any addition to above if you are transfering taxable goods to another state.. which you have received from another state ............ though it is taxable goods you are not required to disallowed any kind of input..

for example we are delhi / any state.. & received goods from Rajsthan ...100 Qty.. outof which we are transfering 50 qty..( whenever no any time limit ) to Hyd.. we have not dis allowed any VAT on this 50qty....

Regards,

Vikky Vasvani

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Rohit (CA-Final) (1485 Points)
Replied 06 September 2012

In Brief there will be no deduction in Input VAT Credit .. ????

Another related question ---

If VAT on good charged was 1% then how much Input VAT Credit will be deducted ?

Vikky Vasvani (Executive -Accounts & Finance) (321 Points)
Replied 14 September 2012

Yes No Deduction in Input Credit........

However .. while making CST Sales if goods Local Sales Tax Rate is @ 1% .. while saling the goods.. you have to charges CST VAT @ 1% and not 2% ...
While making Branch Transfer VAT disallowed @ 1%..............not 2%..........

Hope you understand at all................further any query mail me on vikky.4843 @ gmail.com

Vikky Vasvani

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