Answer Posted / abhivirthi tax and industrial
Tax paid on purchases is called Input Tax Credit. Input Tax
Credit available on all purchase bills should be arrived
(including the Input Tax Credit to be adjusted if any during
the previous month). Input Tax Credit is eligible only on
the taxable purchases made (from the registered dealers with
TIN in force) within the State and VAT shown separately.
Tax payable on the taxable sales or deemed taxable sales is
called Output Tax payable. The input tax paid on the taxable
purchases as above should be deducted from the output tax
payable and if the output tax payable is greater than input
tax credit, the balance amount to be paid to Government is
called Output Tax due/payable. If the Output tax payable is
lesser than the Input Tax Credit, the excess amount is
called Input Tax Credit available and the same will be
carried forward to the next month. The Input Tax Credit
carried forward to the next months will be adjusted in the
ensuing months.
EXAMPLE 1. (If goods are sold fully)
Purchase T.O. Rs.10,000.00 + VAT @ 14.5% Rs.1450.00 =
Rs.11,450.00
Rs.10,000.00 + VAT @ 5% Rs. 500.00 = Rs.10,500.00
Rs.10,000.00 + Exempt Rs. NIL = Rs.10,000.00
Total Rs.30,000.00 Input Tax Credit Rs.1950.00 = Rs.31950.00
Sales T.O. Rs.15,000.00 VAT @ 14.5% Rs.2175.00 =
Rs.17,175.00
Rs.11,000.00 VAT @ 5% Rs. 550.00 = Rs.11,550.00
Rs.10,500.00 VAT @ 0% Rs. NIL = Rs.10,500.00
Total Rs.36,500.00 Output Tax due Rs.2725.00 = Rs.39,225.00
VAT Payable/Due to the Government Rs.2725 -- Rs.1950 = Rs.
775.00
EXAMPLE 2. (If goods sold are partly)
Purchase T.O. Rs.10,000.00 + VAT @ 14.5% Rs.1450.00 =
Rs.11,450.00
Rs.10,000.00 + VAT @ 5% Rs. 500.00 = Rs.10,500.00
Rs.10,000.00 + Exempt Rs. NIL = Rs. NIL
Total Rs.30,000.00 Input Tax Credit Rs.1950.00 = Rs.31950.00
Sales T.O. Rs. 8,000.00 VAT @ 14.5% Rs.1160.00 = Rs.
9,160.00
Rs. 4,000.00 VAT @ 5% Rs. 200.00 = Rs. 4,200.00
Rs.10,500.00 VAT @ 0% Rs. NIL = Rs.10,500.55
Total RS.22,500.00 Output Tax due Rs.1,360.00 = Rs.23,860.00
Input Tax Credit carried forward to next month 1950 -- 1360
= Rs.590.00
Reply From:
ABHIVIRTHI Tax and Industrial Consultancy
R.R.JAGADEESAN
VAT PRACTITIONER AND INDUSTRIAL CONSULTANT
H-63, Palaami Enclave, New Natham Road,
Madurai-625014.
Cell: 9994990599
| Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
F FORM RECEIVED FROM SUPPLIER, NOT DEDUCTED GOODS RETURN AMOUNT THEREAFTER WHAT IS THE PROCEDURE DONE BY DEALER?
if am registered dealer & i am using road permit, i have to pay entry tax, which goods, I am receving in jammu
How To Calculate Gross Sales for vat return -15
if cst sales and purchase is completed and we issue c form and received c form also.but in next month both sales and purchase are return. my question is how to pass reverse entry when c forms issue/receive. how it cst return also.
what is capital account? how to manage it? what is the process?
what is a rule for issue form 38 and tham form c any purchaser can issue form 38 or there is certain rule and regulation.
can i adusted our vat credit in W.C.T. payable?
How can done the Accounting of WTC ? OR WTC treat (Take) like Service tax credit?
IF XXX GOT AN ORDER FROM APTRANSCO AS WORKS CONTRACT NOW XXX PLACED AN ORDER TO YYY THAT TO SUPPLY 50% OF THE MATERIAL IN ORDER. NOW WHAT IS THE SALES TAX RATE HAVE TO CHARGE BY YYY TO XXX. NOW MY DOUGHT IS YYY IS NOT SUPPLING THE GOODS TO APTRANSCO, HE CANT CHARGE 4%, IF POSSIBLE PLEASE TELL ME THT HOW CAN HE .
Hi, Is there limit of applicablity of excise payment for any orgnization...?? what is date of excise payment..?? Excise return date & what procedure & how to take benifit availing service tax in excise return..? What form reuire for Excise Return..??
Hi, I am a VAT/CST dealer in Pune. I had got a work contract with other AP state government. can i purchase material in AP state on 2% CST on issuing 'C' form and supply the same material to the AP state government on VAT /CST 5%. As the government departments are not issuing 'D' forms. please guide.
Q.No.1) I paid Salary to our staff after deduction TDS. what is the journal entry pass at that time of payment of salary only, and then at the time of payment of tds. and the last date for payment of TDS Q.No.2) Suppose I paid Salary In advance due to that officer is take business tour at the end of the month in after deducting TDS. Now What is the journal entry Salary Advance & Payment of TDS. and when i will pay TDS for This Situation. Kindly Help me
We don't have PT, s.tax registration. Our firm is 7 years old. If we want to register, what should we do? Any body can help.
what is rate of different service tax in haryana
What are the treatment & implications in case interstate sales transaction if party is not registered (Individual or other then individual)
