Input Tax Credit Calculation in Uttrakhand

[PAWAN KUMAR SHARMA]

Dear Sir,

We have 2 different manufacturing companies as well as one marketing branch in Uttrakhand and all these have single VAT/TIN Number.

My question is about calculation of Input Tax Credit,

Whether we have to calculate Input Tax Credit for all these separetely and then finally have to be clubbed in Return

 

OR

We have to club all the figures first and then calculate Input Tax Credit.

Example:

 

Division 1 :(Manufuacturing): is doing 100% STock Transfer

Division 2 : (Manufacturing): is doing 50% Sale & 50 & Stock Transfer.

Division 3:Marketing: Only Sales.

 

AI Summary

Business Seeks Clarity on Input Tax Credit Calculation: Separate or Combined for Divisions? Uttarakhand VAT Laws Apply. A business in Uttarakhand with two manufacturing divisions and one marketing branch, all under a single VAT/TIN number, seeks guidance on calculating Input Tax Credit (ITC). The query is whether ITC should be calculated separately for each division and then combined, or calculated collectively. An advisor suggests a consolidated return, aligning with Uttarakhand VAT laws, as there's no provision for separate calculations. The business currently aggregates sales, stock transfers, and purchases from all locations to calculate ITC, but an auditor advised separate calculations, leading to significant financial discrepancies. Further consultation with tax authorities is recommended.