Dvat input tax when input vat % is more than output vat %
hitesh
(Querist) 01 November 2011
This query is : Resolved
Dear all
my client is purchasing raw material @ 12.5% and selling the finished goods @ 5% output vat.
He is claiming DVAT Input @ 12.5% while Output liabilty is 5% .
The DVAT authority is saying that assessee is wrong in this process he can claim input vat rate lower than output vat rate
Please suggest.
Raj Kumar Makkad
(Expert) 01 November 2011
The presumption of DVAT authorities is erroneous. Your client is following relevant rules in letter and spirit so he is not on fault. The authorities should produce relevant provision in their support.