Download Arunachal Pradesh VAT FORM 1 Annual CST Reconciliation Return Statement. As per Rule 6 of the Central Sales Tax (Arunachal Pradesh) Rules, 2005 Apportionment of input credits and entry tax credits. (Section 9):
(1) Subject to subrule (3), every dealer who claims a credit for input tax or entry tax under section 11 in respect of any purchase or import of goods shall prepare and maintain a detailed record of the manner in which the entitlement to and the amount of the credit was calculated.
(2) The records referred to in subrule (1) shall clearly identify the way in which the purchase or import is related by the dealer to the making of sales that are taxable under the Act, Sales that are not liable to tax under Section 7 and sales that are exempt under section 6 .
(3) Safe harbour method. Pursuant to subsection 4 of section 9, the Commissioner will allow every dealer to calculate the
amount of credit for input tax and credit for entry tax for purchases (not being raw materials nor trading stock) made in a tax period in the following manner:
A x (B+C) / D
A = Total amount of credits for input tax or entry tax claimed by the dealer in the current tax period for purchases.
B = Turnover of sales for which the dealer is liable to pay tax under section 3 during the prior year (or would be liable to pay tax
if the Act were in operation during that period).
C = Turnover of sales not liable to tax under section 7 during the prior year (or would not have been liable if the Act were in
operation during that period).
D = Total revenue of the dealer.
(4) For the purposes of this rule “total revenue” means the gross revenue earned by the dealer in the prior year from all its activities conducted in any place reduced by the following amounts:
(a) proceeds of sales made in the course of winding up the dealer’s activities;
(b) sales made as part of the permanent diminution of the dealer’s activities; and
(c) sales of real estate.