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?
Clarification Sought on VAT ITC Reversal for Branch Transfers: Should All Cement Types Be Included in Turnover Calculation? A query was raised regarding the reversal of VAT Input Tax Credit (ITC) under the Andhra Pradesh VAT Act, specifically concerning branch transfers of clinker and different types of cement (OPC 43, OPC 53, PPC). The issue involves determining whether the total turnover of only PPC should be considered or if the total turnover of all types of cement (OPC 43, OPC 53, PPC) should be included when calculating the ITC reversal using the branch transfer ratio formula. This discussion seeks clarification on the appropriate method for calculating ITC reversal in such cases. (AI Summary)
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