27 January 2011
Query against Form F If A Company Deals in Two Item · Cement 13.5% · Spices 4% If the company buys cement locally and sell locally & the company Import Spices and sell the goods against F Form And if we cal culcuated reverse tax calculation What should we do and how please do write your comments As cement has input tax but spices have no input tax how can we do this? As in spices I m sending against f form but no input tax is avail over…… Reverse tax rule 23 by 4 west bengal sales tax firstname.lastname@example.org
28 January 2011
Rule 23/(4) of the W.B. VAT Rules deals with Reverse Tax procedures and provides as follows : .Where a registered dealer cannot keep separate account of purchase of goods for the purpose of determining reverse credit under sub-rule (1), the input tax credit or input tax rebate already enjoyed will be reversed in the following manner: Y = [A x B / C] - X Where- ‘Y’ = Input tax credit or input tax rebate to be reversed in the ‘tax period’; ‘A’ = Input tax credit or input tax rebate enjoyed in a ‘period’; ‘B’= Aggregate of sale price of goods for which reversal has been made till the ‘preceding period’ including sale price of goods for which reversal is to be made in the ‘tax period’; ‘C’ = total sale price of goods in that ‘period’; and ‘X’ = Input tax credit or input tax rebate reversed till the ‘preceding period’. Explanation I – For the purpose of this rule, “period” means the period starting from the first day of the year and ending on the last day of the month when the occasion of reverse credit arises and “preceding period” means the period starting from the first day of the year and ending on the last day of the month preceding the month for which reverse credit is to be calculated. Explanation II – Where the dealer has already reversed input tax credit or input tax rebate in the same year on one or more earlier occasion or occasions, due credit of the same shall be given while determining the reverse credit in a later occasion. 24. (1) Where a registered dealer, on account of loss of any tax invoice The data extracted above meets your query.
28 January 2011
Dear Mr. Jain, I think there is utter confusion at your end. Form-F is used for branch-transfer of goods from one branch/head office to another branch of the same entity. But you say that you are selling spices against Form-F. THIS IS NOT CLEAR. Further, when you have not paid any VAT in respect of purchase of spices (since you imported the same - unless you pay Special Additional Duty at the time of import), where is the question of any "INPUT TAX CREDIT" at all?