VAT CST ADJUSTMENT

[Sajid Ahmed]

Please solve this, how much tax to be payable:

Purchase from URD for Rs.5,00,000

Purchase from RD   for Rs.1,00,000

Sales against C Form for Rs.10,00,000

Sales VAT 14.5 percent        for Rs.1,00,000

Exempted Sales        for Rs.50,000

Please guide how to calculate ITC and tax payable.
 

AI Summary

Input tax credit eligibility clarified: tax due on exempted sales; credit only for registered-supplier purchases used in taxable sales.
Tax is payable on the value of exempted outward supplies identified in the query. Input tax credit is available for purchases from registered dealers; purchases from unregistered dealers may support credit only if the goods are used in manufacturing finished goods that are sold on payment of VAT/CST, and credit otherwise depends on compliance with statutory conditions.