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

Input Tax Credit calculation: where units share a single TIN, credit and returns should be prepared on a consolidated basis.
Where multiple units operate under a single VAT/TIN within the State, input tax credit claims and returns should be prepared on a consolidated basis; statutory provisions require claiming credit in the prescribed return format and within prescribed timeframes, including special procedures for opening stock. The State VAT law contains no provision for separate location-wise credit calculation under one registration, and taxpayers uncertain about the effect of different apportionment methods are advised to seek clarification from a commercial tax officer or file an application with the VAT Department.