Whether VAT input credit can be availed in case of a product chargeable to 0%VAT, but scrap chargeable to 4% VAT. In short, sale of the main product exempted from VAT, but Scrap is chargeable to VAT.
Rajalakshmi (Student) (437 Points)
04 July 2009Whether VAT input credit can be availed in case of a product chargeable to 0%VAT, but scrap chargeable to 4% VAT. In short, sale of the main product exempted from VAT, but Scrap is chargeable to VAT.
RAJU
(LEARNER)
(1089 Points)
Replied 04 July 2009
Hi,
Where is the question of availing the credit when tax itself is not paid. At the time of purchase, you would not have paid tax, so obviously, you cannot avail the credit.
Jagan Mohan Rao, Nerella
(Retired DCTO)
(49 Points)
Replied 01 May 2010
Hai Rajalakshmi
There is a formula to calculate, it depends on how much percentage of scrap is there that you get from the input. So verify the ACT book there is a formula in regard to this calculation. The formula may be (A*B)/C.
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