What if my input tax is much higher than my output tax. for example i
buy a commodity for Rs. 112.50 (VAT paid is 12.5% i.e. Rs.12.50 on 100
Rs. base price) i sell the same at 4% vat (i.e. output VAT is 4% on Rs.
150 which is my selling price, i.e. output vat comes ton Rs.6.00). Will
i be able to claim credit of Rs. 12.50 - Rs. 6.00 - Rs. 6.50? Please
clarify..
Regards,
Menu
Claim of credit
Replies (2)
Prakash ji, you are eligible to a total input credit of Rs.12.50 which you have paid on your purchase. And as you have paid output tax at Rs.6.00 on your sale, you can setoff your liability of Rs.6.00 with your input credit of Rs.12.50 and you will still be left with the remaining credit of Rs.6.50 i.e (Rs.12.50 minus Rs.6.00).
Yes , at year end you file refund claim.
Recent Threads
- Exports against INR PO payable by Domestic Company
- Which websites are best for government exam prepar
- TDS on maturity payment of LIC of india
- ITR2 Gold ETF short and long term
- Query under faceless assessment
- Purchase of business
- Refund of ITC for advance paid to overseas supplie
- Clubbing query (when gifts given to multiple fami
- Transfer Pricing Audit Upload Form 3CEB - Income T
- Only a Few Pages Indexed by Google Despite Sitemap
Related Threads
CAclubindia
