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.

[Surender Gupta]

Since your query contains some technical issues, you need to contact someone who is expert in Delhi VAT.

AI Summary

VAT input credit entitlement questioned for stock-transferred materials processed in an incentivised zone then sold in Delhi. Whether VAT paid on raw material purchased in Delhi is available as input tax credit when the proprietorship stock-transfers raw material to its own factory in an excise-free, income-tax-incentivised zone, then transfers finished goods back to Delhi and sells them there; whether the full VAT on the raw material is utilisable against output VAT on finished goods; and whether availability of such VAT credit would affect entitlement to income tax deductions for activity in the incentivised zone. The recorded reply advises consulting a Delhi VAT specialist and does not resolve these issues.