Salestax problem in bihar

Mr. Agrawal, I am an advocate from Kerala. According to the provisions contained in the Kerala Value Added Tax Act,2003, your point is correct because I am not conversant with Bihar VAT Act. This is my view that Opening stock held as on 01-04-2011, is taxable @13.5% against its sales since you have availed the Input tax credit during the month it were purchased. If possible you sell entire stock and pay tax. You have taken Input tax credit on the purchases effected and might have been adjusted towards tax liability during the previous year. So you are liable to pay tax on the closing stock held or it will be assessed as reverse tax. However either you may contact your assessing authority or a tax practitioner or a tax advocate in your area to settle this issue. Thanks.