Reversal of VAT ITC in case of Branch transfer - Andhra Pradesh VAT Act

[Guest]

Sir,

Both the clinker and Cement (OPC 43, OPC 53, PPC) will be transferred as branch transfers. In case of reversal of ITC of Inputs, formula adopted is

1)BT Ratio on Cement = Branch Transfer of Cement x VAT ITC / Total Cement Sale/Trf.

In case of certain raw materials used only for PPC, whether the total Turnover of only PPC is to be considered or the total Cement (OPc 53, OPC 43, PPC) is to be considered?

AI Summary

Reversal of VAT input tax credit: whether branch-transfer ratio should use PPC turnover or combined cement turnover. Reversal of VAT input tax credit for branch transfers hinges on apportionment: whether inputs used solely for PPC should be allocated against PPC turnover only or against combined cement turnover (OPC 43, OPC 53, PPC) when applying the Branch Transfer Ratio formula for VAT ITC reversal.