0% or exempt
This query is : Resolved
24 September 2013
sir what is the difference between 0% rate goods or exempted goods?
Can a 0% sold goods able to get input credit?
24 September 2013
There is sometimes confusion over what the difference between Zero-Rate VAT, VAT Exempt & Out of Scope VAT.
Zero-Rate VAT items, such as books, childrens clothes and some food, do have VAT on them, it’s just at zero percent, so the actual VAT is nil. However, Suppliers of zero-rated goods/services can still reclaim all their input VAT (the VAT on their own purchases.
VAT Exempt items, such as postage stamps, do not have VAT on them (not even at 0%). The VAT is nil. Suppliers of Exempt goods cannot reclaim the input VAT (the VAT on their own purchases) relating to Exempt Supplies.
Zero-Rate VAT items, such as books, childrens clothes and some food, do have VAT on them, it’s just at zero percent, so the actual VAT is nil. However, Suppliers of zero-rated goods/services can still reclaim all their input VAT (the VAT on their own purchases.
VAT Exempt items, such as postage stamps, do not have VAT on them (not even at 0%). The VAT is nil. Suppliers of Exempt goods cannot reclaim the input VAT (the VAT on their own purchases) relating to Exempt Supplies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- TAN for Partnership
- Sales return eway bill
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- E way bill for tractors
- REGARDING GST LIABILITY/....
- Specified Profession
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Plot of land. Cost of Acquisition
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
