Understanding the State–Level Constants Setup

The way you account for VAT during the purchase of capital goods and the stock transfers varies in each state of India. For example, some states are eligible to claim the tax paid during the purchase of capital goods over a period of 36 months, whereas others can claim it over a period of 24 months. During the stock transfers, the state retains a percentage of the input tax. The percentage varies for each state.

Use the Retention Percentage program (P75I220) to set the state level constants.

Enter the deferred period for the capital goods and the retention percentage for the stock transfers in the Retention Percentage program.