Vat
Anwar
(Querist) 22 April 2013
This query is : Resolved
IN WHICH STATE PARTIAL INPUT TAX CREDIT AVAILABLE IN RESPECT OF INPUT USED FOR MANUFACTURING OF EXEMPTED GOODS ( UNDER VAT)
Adv k . mahesh
(Expert) 22 April 2013
The essence of Vat is in providing set-off for the tax paid earlier, and this is given effect through the concept of input tax credit/rebate. this input tax credit in relation to any period means setting off the amount of input tax by a registered dealer against the amount of his output tax
for stock transfer/consignment transfers /branch transfer of goods out of the state, in put paid in excess of 4%(now 2% as cst rate is 2%) will be eligible for tax credit
some states partial input tax credit is available in respect of inputs used for manufacture of exempted goods.
the tax credit on a sale within the state or in the course of inter-state trade or commerce