Thursday, August 11, 2011

What is input tax credit ? (Tamilnadu Value Added Tax - TN VAT)

 What is input tax credit?
Input tax credit is an aggregate total amount of tax paid by a registered
dealer on the total purchases made by him within the State from other
registered dealers (for a particular period.); but not eligible in some cases.
The input tax credit includes the purchase tax paid under Section 12 of the
VAT Act.
The input tax credit can be adjusted against the tax payable by the
purchasing dealer on his sales.
The dealers are not eligible for input tax credit on all inputs. There are
certain restrictions and conditions on eligibility of input tax credit. They are
given in detail under TNVAT Act, 2006.



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