Our Recommendations :-
Follow OTHER TAX FB Page

CARRY FORWARD OF INPUT VAT??

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 NA asked almost 3 years ago

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??

    1       1 Answer Now Comment Report
6 Answers
Open uri20170510 32134 1c996lj?1494421732 Anil answered over 2 years ago

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. Thanks

    1       0 Comment Report
Important Note – Preparing for OTHER TAX?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

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.

    0       0 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 aditya answered almost 3 years ago

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.

    1       0 Comment Report
Picsjoin 2017224123730582 Archana answered almost 3 years ago

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

    2       2 Comment Report
Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered almost 3 years ago

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.

    1       1 Comment Report
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CHITRANJAN AGARWAL answered almost 3 years ago

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. Writer CA Chitranjan Agarwal

    1       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.