12 April 2008
value added tax is a tax you will pay a tax on your gross profit f.e. you purchase is rs one lakh and you paid tax @4% is rs. 4000/-and you slaes is rs 110000/-and you collect tax of rs 4400/- then you will pay net tax of rs 400/(4400 output tax minus rs 4000/-input tax)
CAclubindia
