Input on vat paid

[sanjay aggarwal]

My issue relates to Delhi VAT Act.In case a proprietory concern buys raw material at delhi with delhi VAT and stock transfers the raw material to its own factory situated in excise free and income tax i.e. u/s 80IB zone and then again stock transfer the finished goods from factory to delhi and then sells that finished goods to some party in delhi by charging delhi vat. issues are: 1. Whether the Vat input on purchase of raw material shall be available for utilization against the output vat of finished goods. 2. Whether the full vat on purchase of raw material shall be available for utilization of output vat. 3. if the full vat is available for utilization, whether the 80IB deduction under income tax act shall also be available on purchase sale activity carried out at delhi.

AI Summary

Clarification Needed on Input VAT Utilization for Goods Transferred Between Delhi and Excise-Free Zones Under Section 80IB A user inquired about the applicability of input VAT on raw materials purchased in Delhi and subsequently transferred to a factory in an excise-free zone, then back to Delhi for sale. The questions focused on whether the VAT paid on raw materials could be utilized against the output VAT on finished goods and if the full VAT could be utilized while still claiming an 80IB deduction under the Income Tax Act. The response suggested consulting a Delhi VAT expert due to the technical nature of the issues.