One of my friend a registered dealer in Karnataka value added tax Act has purchased raw materials of Rs. 100000 and sold finished products for 75000 only ( Incurred loss of Rs.25000) on Purchase he claimed Input tax of Rs.14500. Is he liable pay tax loss of Rs.25,000 or is he required to reverse input tax credit on purchase to the extent of Rs.25,000
21 June 2013
Sir Here sales price is lessthan purchase price and hence incured loss. As out put is less than input on same product weather any input restrictions apply this is my concern. is there any any clause in KVAT 2003 to prevent from taking entire input tax credit when goods were sold for lesser price than purchase price kindly let me know
21 June 2013
Sir Here sales price is lessthan purchase price and hence incured loss. As out put is less than input on same product weather any input restrictions apply this is my concern. is there any any clause in KVAT 2003 to prevent from taking entire input tax credit when goods were sold for lesser price than purchase price kindly let me know
CAclubindia
