13 January 2018
Dairy Don paid an input tax of Rs.25. They charged Rs.600 plus GST to their client. Assume the GST is 5%. What is the input tax credit?
A)25 B)30
A manufacturer bought Raw Materials worth Rs.500 to make pressure cooker. Assume the GST is 18%. The manufacturer would have paid GST of Rs.90. He decides to sell it to a distributor at Rs.800 plus GST. Then the tax on it work out to Rs.144. How much can the manufacturer can claim input tax credit?
13 January 2018
you can claim as ITC of the amount of tax you have paid as buyer.In first scenario ITC amount is 25. In the second case ITC amount is 90..
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