Input vat credit and declaration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2013 hello sir
my name is ram vishwakarma
i have one question from excise
can the buyer of goods purchased from importer ( claimed for refund of Special CVD ) can take INPUT VAT CREDIT
2) And what kind of declaration have to made in sales invoice

please help me

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

17 July 2013 Input tax credit is the credit for tax paid on inputs. Every dealer is liable for output tax on the taxable sale effected by him. The basic principle of VAT is that every dealer pays tax only on the value addition in his hands. Input tax credit is the mechanism by which the dealer is enabled to setoff against his output tax the input tax.

Dealers are not eligible for input tax credit on all inputs. There are certain restrictions and conditions on the eligibility of input tax credit as may be stipulated in the respective State Acts. The restrictions and conditions are answered separately.

further info:
http://www.tinxsys.com/TinxsysInternetWeb/faq.htm