Posted On 15 February 2011 at 19:26
Sir facts relating to my query for A.Y. 2005-06 are:
Sales subject to VAT Rs.10,00,000
Consignment/Branch Transfer Rs.5,00,000
Total sales Rs.15,00,000
Total Purchases (4% + 12.5%) Rs.10,00,000
ITC on above (4% + 12.5%) Rs.1,00,000
Now i want to calculate the reversal amount (apportionment for branch transfer)??
I am little bit confused over 2 methods which are:
Reversal amount= 1,00,000*5,00,000/15,00,000 = 33333
Reversal Amount= 5,00,000*10,00,000*4/15,00,000*100 = 13333
PLEASE SOLVE MY QUERY RECITING APPLICABLE RULES AND TAX LAWS.