19 December 2008
While calculating the liability for a partiular tax period we take set off of taxes paid on purchases. But whether we have to consider stock factor while calculating set off ie whether Set off available = Tax paid On (Op st + Purchases - Cl Stock) or Set off available = Tax paid on Purchases
Guest
Guest
(Expert)
19 December 2008
Set off available = Tax paid on Purchases
20 December 2008
Tax paid on opening stock is available only for the transition period and not as a regular feature otherwise you will have double benefit which is wrong. Secondly whenever you opt out of composition scheme you get benefit of set off of tax paid on stock available with you at that time.