The Vat department vide Notification dated 15-11-2013, had amended section 13(1) proviso and allowance of Input tax credit was restricted to goods sold or used in manufacturing, processing or packing of taxable goods w.e.f. 01-04-2014. The various trade organizations pitched their voice against this law which is going to deny their rightful claim of Input tax credit and going to keep them glued to their account books in general and stock records in particular.
Schedule A and Schedule E have been amended to give effect to single stage taxation system. While Schedule A has its genesis in Section 16, Schedule E bears its roots in Section 8. As per Schedule A , specified commodities have been made tax free at wholesaler or distributor or retailer stage. However, section 16 bears no relation with stages of goods
