rahul (friends) (81 Points)
30 August 2010
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 30 August 2010
Input tax credit means when u purchase some goods then you have to pay some tax.
And when you sale some goods then you receive some tax. you have to deposited that tax to govt. if you have already paid tax on purchases then that amount of tax u can claim from output tax.
Example ; -
Purchase raw material for Rs. 100000 and tax paid Rs. 10000.
Sales - Rs. 150000, Tax collected Rs. 15000.
Now you have already paid tax on purchases of Rs. 10000. This amount of credit you can take while paying output tax.
Now net tax payable to govt = Rs. 15000 - 10000 = Rs. 5000.
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 30 August 2010
tax crdt on capital guds adjusted over max. 36 equal monthly installments" means :-
Under VAT law, you paid tax on Capital goods and Input. On Input you receive full credit but on capital goods you receive credit in 36 equal monthly installments.
This time period of 36 months is different in different states. Some states allowed in 1 installments while some in 2 months or some in 36 months.
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