Credit tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 September 2011
Hi All,
Can anyone tell what is input Tax & Out Put Tax what is the machanisum how it works. & what is input credit what it is actually is there any out credit?
Can anyone tell what is input Tax & Out Put Tax what is the machanisum how it works. & what is input credit what it is actually is there any out credit?
20 September 2011
Under Value Added Tax Scheme, the tax can be paid for the portion which you added the value to avoid the cascading effect of tax, suppose you purchase material for Rs.100 and paid the VAT Rs.5 so this Rs.5 is your input tax credit, and if the material selling by you for Rs.110 so you need to charge Rs.5.50 as VAT and pay to government, on that payment of Rs.5.50 you can adjust the Rs.5 input credit which you paid already on purchase and can be pay only Re.0.50. like this VAT mechanism is working
Message likes :
1 times
23 September 2011
I agree with the expert
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
Similar Resolved Queries
Unanswered Queries
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Price inclusive or exclusive of GST while made entry in P& L Account
- Tds on commission charges
- Minimum tax payable to file Updated return
- Dep. as per companies act
- Applicability of GST on Salary Reimbursement Component
- UDIN ISSUE
- Change Of Karta In Case of Death
- Renovation exp. in flat by family member
- FAST-DS Scheme - Foreign Assets
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
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
Quick Links
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
ARTICLESHIP
18 September 2026
Industrial Trainee
Twenty Point Nine Five Ventures Private Limited
Noida
CA Inter
View Details
CCI
Pro
CAclubindia
