Tax paid on Goods lying with Agent under section 192

[RAM SHARMA]

Dear Experts,

if any goods lying at the premises of the agent on the appointed day , agent shall be entitled to take credit of the same subject to the following conditions :

• Agent is Registered taxable Person under the act.

• Both the agent and principal declare the detail of such goods before the appointed day as prescribed. It means 30.06.2017.

• Invoice of the same goods have not been issued earlier than twelve months before the appointed day.

• Principal has not availed the credit of the same goods.

A) Whether a manufacturer have to reverse both vat and cenvat credit utilized in manufacturing of excisable goods. If so then what will be the formula of vat and cenvat reversal on stock lying with agent.

B) Whether Agent can take input credit of both vat and cenvat, when we have removed excisable goods against Form F (Transfer Sale)

C) Whether it is possible if freight paid by company on customer behalf and after that charged by customer through debit or credit note. The purpose of our do not include freight in transaction value so that we could save GST on freight in GST Regime.

Please Advice.

Thanks&Regards

[Yatin Bhopi]

Dear experts

Please guide

AI Summary

Input tax credit for goods with agent: entitlement subject to registration, mutual declaration, invoice timing, and principal's non-claim. Entitlement to input tax credit for goods lying with an agent on the appointed day is conditional: the agent must be a registered taxable person; both agent and principal must declare details of such goods before the appointed day; invoices must not have been issued earlier than twelve months before the appointed day; and the principal must not have availed credit on those goods.