Vat does not interfere with decision of purchase.

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gauri (Querist)
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16 May 2014 "It is said that VAT does not interfere with the decision of purchase".
However input tax credit is not available for inter state purchase or purchase from a registered dealer.
So is the statements in "" correct or not? And if correct, please give your reasons.

Nikhil Kaushik online

Nikhil Kaushik online

(Expert)
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16 May 2014 this statement is good only in an ideal world and may become true once GST comes into force.

as on today, the decisions do get influenced by availability of tax credits and inter-state setoffs.

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gauri

gauri (Querist)
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17 May 2014 Thankyou for your reply!