TaxTMI 
TaxTMI 
Dear all, form 16 has been changed under dvat act. is it notified. we have to file the old or new form 16 for qtr ending 31-03-2010. how we have to caculate vat on closing stock as we are not maintaing stock register quantity wise.
Form 16 under DVAT - how to calculate vat on closing stock
17 Apr 2010 
1 Reply 
6173 Views Asked by
VAT on closing stock requires reliable inventory records and year end physical counts with ABC controls to support valuation.
Form 16 under DVAT and VAT on closing stock require reliable inventory records to support valuation in returns. Dealers should maintain stock registers where practicable; if not feasible for numerous low-value items, perform a year-end physical count for each item. Adoption of an ABC inventory method is recommended so day-to-day registers are kept for high-value items while periodic verification covers lower-value items, ensuring a defensible basis for calculating VAT on closing stock and completing Form 16 disclosures. (AI Summary)
Form 16 under DVAT and VAT on closing stock require reliable inventory records to support valuation in returns. Dealers should maintain stock registers where practicable; if not feasible for numerous low-value items, perform a year-end physical count for each item. Adoption of an ABC inventory method is recommended so day-to-day registers are kept for high-value items while periodic verification covers lower-value items, ensuring a defensible basis for calculating VAT on closing stock and completing Form 16 disclosures. (AI Summary)