Q: What is the procedure for adjusting input tax paid against the output tax payable (Kerala Commercial Tax)?FAQ: What is the procedure for adjusting input tax paid against the output tax payable?
ANs: The dealer claiming input tax credit can deduct the input tax for a return period from the output tax for the return period and pay the balance. But for claiming input tax credit in the case of capital goods the dealer has to apply to the assessing authority in Form No. 25. The assessing authority has to grant a certificate in Form No. 25B. Input tax credit on capital goods can be claimed only after getting the certificate in Form No 25B.