Sir,
We have received notice for branch transfer for that we have not paid reverse credit. In that notice they have metioned the value but we need to know how they arrived that value. We need formula & example also. Our branch transfer was inter state.
Clarification Sought on Valuation Method for Branch Transfer; Input Tax Credit Rules and Rates Explained Under Central Sales Tax Rules. A party received a notice regarding branch transfer without paying reverse credit and seeks clarification on the valuation method used. Two responses were provided. The first response explains that input tax credit on inter-state transfers is allowed only if Form F is filed under the Central Sales Tax Rules. The second response details the calculation of input tax credit reversal, stating that it was previously 3% on stock transfer value and is now 5% on interstate sales without a C form and 3% with a C form. No reversal is needed if transfers are not from VAT-purchased goods. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
