11 October 2008
Generally VAT paid on purchase of goods meant either for resale or used in the manufacture of other goods can be set of against the VAT payable on resale of such goods or the manufactured goods. There is no one to one relation between purchase and sale of goods. If there is an excess input tax to be recovered at the year end,in some states, refund application should be filed in the prescribed form. In other words input tax remaining at the year end shall not be allowed to be carried forward to the next year in such states.
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