Adjustment/Reversal of VAT Credit

Dear All,
I am having one issue regarding the adjustment/reversal of credit pool.I think this issue will be faced by most of the manufacturing companies.
At the time of purchase, VAT will be come in VAT Receivable/VAT Recoverable account.
And at the time of sale, VAT will goes to VAT Payable account.
At the time of payment to GOVT, we do like this VAT Payable = Vat Receiable + Pay from account ( Cash/Cheque )
This is normal scenario.
But in case of my client scenario they are making RM purchase mostly as VAT and transfer the 90 % stock to other plants(depot)
Hence Vat receivable is more than Vat Payable
Vat Receiable  = 1cr
Vat Payable  =    10 Lacs
What we will do the for remaining amount in Vat Receivable ( 90 lacs in Vat Receivable)
Where we will offset this account.
And what practice will followed by the manufacturing companies.
Regards,
Dinesh

first rule u cant not take set off of VAT agains diffrent stat VAT
like u have input VAT in maharastra transfred to Gujrat and sold in gujrat VAT
Accoding to VAT rule uou can not get the set off of MH VAT agains GJ VAT
in u are case if 90% of the material id transfred to diffrent stated then u cant take the set off against this MH VAT
what ever the VAT amount material amount u have transfred certain % only is allowed for VAT set off against MH VAT only
like y have transfred material of 100 and input vat os 10 then u are not elegiv\ble to take set off full 10 againat MH vat output but only redused 2%
10X 2/100 = 0.2  so u can thake set of of 10-0.2= 9.8 against MH VAT output.
rest u have to expense it out and that will be compaies cost .
hope this is clear now

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