The West Bengal Sales Tax Rules, 1995
Chapter VI : Conditions for claiming set off and manner of determination of the amount qualifying for set off of tax payable on sales of certain goods manufactured in West Bengal

64. Method of calculation of tax to be set off under section 22

Where a reroller fails to correlate in accordance with rule 63 his purchases of iron and steel within West Bengal which has been used by him directly for manufacture in West Bengal with the item of iron and steel manufactured therefrom and sold by him in West Bengal, the amount of tax to be set off under section 22 may be determined by applying the formula laid down below :-

		S
T₁=	T x	----------------
		O + M - C

Where T₁= Amount of tax to be set off ;

T = Tax paid as shown separately on purchases of iron and steel within West Bengal which has been used directly in the manufacture in West Bengal ;

S = Quantity of iron and steel sold within West Bengal and qualified for set off ;

O = Quantity of Opening Stock of iron and steel manufactured at the beginning of the period ;

M = Quantity of iron and steel manufactured by him in West Bengal ;

C = Quantity of closing stock of iron and steel manufactured at the end of the period.