kaushal agrawal (properitor) 28 January 2012

Salestax problem in bihar

i am a registered dealer in bihar vat act i have a valid tin no . i am a very old dealer now i want to close my business i have a stock of rs 500000 @ 13.5 % standing as on 31.03.2011. i have not shown any purchase since 1 april 2011 i am just selling my opening stock how much tax will i have to pay my lawyer tells that this stock is of old profits but my point is i have paid taxes @ 13.5% buy these goods any how so why not input output should be done please help me

tahnks a lot

Reply Follow

1 Replies

V.Devananda Narasimham (Advocate) 24 February 2012

Mr. Agrawal, I am an advocate from Kerala. According to the provisions contained in the Kerala Value Added Tax Act,2003, your point is correct because I am not conversant with Bihar VAT Act. This is my view that Opening stock held as on 01-04-2011, is taxable @13.5% against its sales since you have availed the Input tax credit during the month it were purchased. If possible you sell entire stock and pay tax. You have taken Input tax credit on the purchases effected and might have been adjusted towards tax liability during the previous year. So you are liable to pay tax on the closing stock held or it will be assessed as reverse tax. However either you may contact your assessing authority or a tax practitioner or a tax advocate in your area to settle this issue. Thanks.