If you manufacture tax-free goods then on corresponding purchases
4% of Purchase Price
If you are reselling tax-free goods and are using packing material for packaging them, then on packing material purchased
3% of Purchase Price
For interstate branch or consignment transfers on corresponding goods purchased (for goods other than those covered in Schedule B)
1 % of Purchase Price
In the above case if goods sold are covered by schedule B and the corresponding goods purchased are also covered by schedule B then on those goods purchased
36% of Set-off
In case of transfer of property in goods during the execution of works contracts (other than construction contracts) and where the dealer has opted for composition of tax @ 8% , then on corresponding amount of set-off other than that which relates to capital assets and goods in which property is not transferred
4 % of Purchase Price
In above case, starting from 21st June, 2006, if it is construction contracts and the dealer has opted for composition of tax @ 5%, then on corresponding purchases
In case your sales receipts are less than 50% of your gross receipts in a year, set-of will be allowed on only those purchases where the corresponding goods are sold within 6 months from the date of purchase or inter-branch receipt. Tax paid on packing material used for the above will also be eligible for set-off. In case of hotels purchases would include capital goods and consumables (food and drinks) pertaining to kitchens and services
(1-(SP/MRP)) of Set-off
In case of dealers holding Liquor vendor licence, where the sale price is less than the MRP, the reduction will be as given besides
Total
This gives the total amount of Reduction in set-off