My question is that : "Can a company take more input credit and pay less to supplier?"
for example : X company had been in a contract with Y company in 2007 when the rate of excise was 16%. they had a contract that X will get maximum to the extent of 60lakhs excise payments for supplies made to Y. But Y while supplying in 2009 when duty was at the rate of 8% submitted excise duty documents ammounting Rs. 74 lakhs. As per contract it will get only 60lakhs. Now Y says that as at the time of contact excise % was 16% and while supply it reduced to 8% so it will pay only 32lakhs i.e. deducting loss of 8%.
My question is can a company make profit on excise duty payment?
CAclubindia
