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HOW IS INPUT VAT CARRY FORWARDED TO NEXT QUARTER AND HOW DOES IT CALCULATED??? IS IT COMPULSARY TO SHOW SOME PROFIT MARGIN IN EVERY QUARTER??
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Ashley Legg
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Anil
answered
INPUT VAT IS THE VAT THAT IS CALCULATED ON PURCHASES.
VALUE OF PURCHASES * RATE OF VAT ON THE COMMODITY/100
THIS VAT AMOUNT IS ALLOWED AS TAX CREDIT AND IS DEDUCTED FROM THE OUTPUT TAX OR THE TAX WHICH IS PAYABLE ON SALES.
THE AMOUNT OF INPUT TAX THAT IS LEFT OVER AFTER THE ADJUSTMENT FROM OUTPUT TAX IS CARRIED FORWARD TO THE NEXT PERIOD.
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acharya
answered
INPUT VAT IS THE VAT THAT IS CALCULATED ON PURCHASES.
VALUE OF PURCHASES * RATE OF VAT ON THE COMMODITY/100
THIS VAT AMOUNT IS ALLOWED AS TAX CREDIT AND IS DEDUCTED FROM THE OUTPUT TAX OR THE TAX WHICH IS PAYABLE ON SALES.
THE AMOUNT OF INPUT TAX THAT IS LEFT OVER AFTER THE ADJUSTMENT FROM OUTPUT TAX IS CARRIED FORWARD TO THE NEXT PERIOD.
aditya
answered
INPUT VAT IS THE VAT THAT IS CALCULATED ON PURCHASES.
VALUE OF PURCHASES * RATE OF VAT ON THE COMMODITY/100
THIS VAT AMOUNT IS ALLOWED AS TAX CREDIT AND IS DEDUCTED FROM THE OUTPUT TAX OR THE TAX WHICH IS PAYABLE ON SALES.
THE AMOUNT OF INPUT TAX THAT IS LEFT OVER AFTER THE ADJUSTMENT FROM OUTPUT TAX IS CARRIED FORWARD TO THE NEXT PERIOD.
THIS IS HOW INPUT TAX CREDIT IS CARRIED FORWARD.
Archana
answered
Hie Mohmmad,
You can carry forward input tax for unlimited period be it next quarter or next year.
Its calculated as under :-
To get the correct value of VAT carried forward:
In whichever month you have VAT Payable, you need to pass a Journal Entry, i.e.,
Dr. VAT Collected on Sales (Output VAT) XXX
Cr. VAT Paid on Purchase (Input VAT) XXX
Cr. VAT Refund/Payable A/c* XXX
(* Created under Duties & Taxes, Type of Duty/Tax: Others or grouped under Current Liabilities)
In the subsequent month, the payment needs to be passed by debiting the VAT Payable.
In whichever Quarter you have the VAT Refund, the Journal Entry would be as follows:
Dr. VAT Refund/Payable A/C XXX
Dr. VAT Collected on Sales (Output VAT) XXX
Cr. VAT Paid on Purchase (Input VAT) XXX
Jitendra Suthar
answered
Hiii friend...
The vat laws pertaining are different in each state.
**In case of Input Vat credit you can Carry forward in your monthly or Quarterly return as filed regularly.**
Input vat credit is difference between between Purchase Vat and Sales Vat and this difference stands to get set off in future also.
You can either carry forward it till the fourth quarter or by the end of the year you can claim it as refund by submitting a application to the concerned VAT department.
Showing profit margin is not compulsory you just have to fill all purchase and sales figures and show the vat credit properly.
Any mismatch in return will lead to delay of refund in case you apply for refund.
CHITRANJAN AGARWAL
answered
Dear,
Such question is incomplete, please specify State, so that we are able to give you answer. however in case of D-Vat, you just take input amount and output liability after that you have option whether you want to refund balance of input credit or carried forward such credit in next Qtr. As per latest amendment in D-vat now dealer can carried forward their input credit from one year to next year.
Any other query feel free to contact us.
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CA Chitranjan Agarwal
