This section displays the values used in the returns and annexures along with the amount of liability, input credit, adjustments, and VAT/CST payable or refundable.
The assessable value of sales and purchases, and the tax applicable, if any, are displayed under respective columns. The computation provides the net value of sales, purchases, input and output VAT claimed or collected for a specific period. This helps to arrive at the total sales and purchases for the return period.
The details available in this section are:
1. Sales: It displays the total sales (both, local and interstate) which includes the assessable value of taxable and exempted sales, and the corresponding tax amount.
2. Purchases: It displays the total purchases (both, local and interstate) which includes the assessable value of taxable and exempt purchases, and the corresponding tax amount.
3. Payable/ Refundable: This is the aggregate of taxes payable/ refundable for a period. It can be either payable or refundable for each return period. This shows the liability/excess input credit for the period, before any adjustments.
The calculation involved is:
VAT payable = Tax on Sales - Input Tax on Purchases - Credit brought forward
During a tax period, on nullifying the output VAT against the input VAT, if the input VAT amount is in excess, then such excess amount is shown as Refundable.
The calculation involved is:
VAT Refundable = Excess Input tax after setting off (Tax on Sales - Input Tax - Credit brought forward)
4. Adjustments: The various types of VAT adjustments done can either increase or decrease the liability/ input credit. The VAT adjustment entries display only the aggregate value of input and output VAT.
5. Payable after Adjustments or Refundable after Adjustments: The amount available after deducting adjustments from payable/refundable is displayed here.