Input Tax Credit

This query is : Resolved 

14 March 2011 we are using 12.5% taxable raw material for making of machinery which taxable at 4 % my question is that can we avail 12.5 % input tax fully in relation with 4 % sale as per VAT

14 March 2011 yes. You can avail credit of VAT paid against VAT payable irrespective of the fact that rates are different. Hence, you can avail credit of 12.5% VAT paid to 4% VAT payable.

14 March 2011 Yes..agreed with the above expert


14 March 2011 You can use 12.5 % of Input against 4 % of output tax and it is a greated mechanism of VAT



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