input tax-manjunath

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2004 By Default!A Free sample background from www.awesomebackgrounds.comMANJUNATH-0916092 1

presentationpresentationpresentation

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INPUT TAX AND OUTPUTINPUT TAX AND OUTPUTINPUT TAX AND OUTPUT

TAXTAXTAX


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2004 By Default!A Free sample background from www.awesomebackgrounds.com 2

INPUT TAXINPUT TAX

1. WHAT IS INPUT TAX

Input tax means tax on goods purchased by a dealer

in the course of his business. The eligible purchases

would include any goods purchased by a dealer forre-sale or for use in the manufacture or processing

or packing or storing of other goods or any other

use in business including capital goods excluding

exceptions prescribed in seventh schedule of the

Act.


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INPUT TAX RESTRICTIONSINPUT TAX RESTRICTIONS INPUT TAX SHALL NOT BE DEDUCTED IN CALCULATING THE

NET TAX PAYABLE, IN RESPECT OF:

Tax paid on purchases attributable to saleof exempted goods exempted underSection 5.

Tax paid on purchase of goods that are

dispatched outside the State

goods including capital goods as specifiedin the Fifth Schedule

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Tax paid on purchase of capital goods clause

(3).

Tax paid on purchases attributable to naphtha,

liquefied petroleum gas, furnace oil, light

diesel oil, superior kerosene oil,

Tax paid on goods purchased by a dealer who

is required to be registered under the Act, buthas failed to register.

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Tax shall not be deducted by an agentpurchasing or selling goods on behalf ofany other person other than a non-residentprincipal.

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DEDUCTION OF INPUT TAXDEDUCTION OF INPUT TAX

Deduction of input tax shall be allowed tothe registered dealer in respect of thepurchase of capital goods

Deduction of input tax under this Sectionshall be allowed only after Commencement of commercial

production, or sale of taxable goods

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Pre-registration purchases

Deduction of input tax shall be allowed on

the difference between the rate of inputtax charged at a rate higher than four percent.

. Composition of tax.

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a) Whose total turnover in a period of fourconsecutive quarters does not exceedFifteen lakhs rupees;

(b) Who is a dealer executing workscontracts;

(c) Who is a hotelier, restaurateur,caterer;

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OUTPUT TAXOUTPUT TAX

Output tax in relation to any registereddealer means the tax payable under this Actin respect of any taxable sale of goods madeby that dealer in the course of his business,

Ex. A steel co. Sold to a machinery co. acertain quantity of steel worth of 5 million.The applicable rate is 17%the output tax

charged to the steel co. Tax Shall becomputed as follows

Output tax = 5 million * 17% = 850000

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2004 By Default!A Free sample background from www.awesomebackgrounds.com 1010

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input tax-manjunath

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