I am a registered dealer under VAT. I have purchased an article that is levied at a rate of 13 % VAT. Assume that when the same article is sold its output VAT rate is 5%, can i claim 13 % of input VAT i have paid for it as credit ?
3 Replies
Ajit kumar Dubey
(Taxation Manager)
(637 Points)
Replied 16 January 2013
There is no restriction vis-a vis liability on the amount of VAT Input Credit. Ideally, there cannot be two rates for one single product. Now, if you are a dealer than the rates will remain the same. Hence only when you are a manufacturer, the VAT rates applicable to RM and finished product may varry. If that be the case then still, you can avail the entire VAT Input credit paid at the time of purchasing the RM's.
Hope the subject is clear to you.
Sonu Kumar
(Account Manager)
(665 Points)
Replied 16 January 2013
Agree with Mr. Ajit Kumar Dubey
Vat on Cement is 13.5% in Bihar but Vat on Cemented Pipe made of Cement is 5%
You Can Take Input Credit on Cement @ 13.5%
Recent Topics
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
Related Threads
CAclubindia
