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,
CAclubindia
