Input adjustment zero rate - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Tax (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=8) +--- Thread: Input adjustment zero rate (/showthread.php?tid=9867) |
Input adjustment zero rate - Information Consultant - 05-14-2011 Dear Forum Member We are registered as a manufacturer and exporter and have a Textile unit . Can we claim input adjustment ( 17 % ) against 4 % output tax charge to unregisterd supplier? - Anfal Shabbir - 05-16-2011 Dear Members if u are selling to unregistered persons, than u are not eligible to adjust input tax, the input tax should be charged to the cost I am submitting herewith the practical example of point 2 of clarification of SRO 283 PARTICULARS VALUE TAX sales to RP 1000 0 sales to URP 1000 40 PURCHASE 588 100 NOW WE WILL COMPUTE ADMISSIBLE INPUT 100/2000 X 1000 ADMISSIBLE INPUT IS 50/- NOW WE ADJUST RS.50/- AS INPUT TAX AND CLAIM RS.10 AS REFUND, THE INADMISSIBLE INPUT TAX RS.50 WILL BE ADDED IN THE COST OF SALES TO URP I HOPE THAT THE ABOVE EXAMPLE WILL CLARIFY THE POINT BEST REGARDS ANFAL SHABBIR - Information Consultant - 05-16-2011 thanks - Information Consultant - 05-19-2011 Dear Forum member As per my understanding output tax charges to unregisterd supplier @ 4 % is not adjustable against input tax @ 17 % . It is evident from April 2011 return that 4 % output tax is adjustable against 17 % input tax and col no 22 shows the diff of output and input. Should I deposit the diff amnt in the next month or follow the same practise and prepeare a sales tax challan full amount of 4% without input adjustment. I need ur comments. - wasim akram - 05-19-2011 NO NEED TO DEPOSIT TAX ON ACCOUNT OF 4% OR 6%. MOST OF THE RP HAS NOT DEPOSITED TAX AND FOLLOW THE RETURN AS USUAL. IT IS THE BASIC RIGHT OF THE ASSESSEE TO ADJUST ITS PAYABLE AGAINST RECEIVEABLE AMOUNT. IF DEPARTMENT RESIST AND SERVE NOTICE OF PAYMENT OF TAX iT WILL DIRECTLY BE CHALLANGED IN THE HIGH COURT. DEPARTMENT WOULD HAVE TO ADJUST BECAUSE IT IS THE FUNDAMENTAL RIGHT OF THE ASSESSEE - Anfal Shabbir - 06-14-2011 Dear Information Consultant and Wasim The apprehension of waseem is wrong, SRO 283 specifically disallow input tax against sales @ 4% and 6%, in the sales tax return there is a column 4 inadmissible input tax write the sales tax input amount excluding paid on utilities in that column and your liability will arise also note that input tax paid on utilities is only adjustable against sale to unregistered persons Regards Anfal Shabbir - Information Consultant - 06-25-2011 Dear Anafal Pls clarify the col 24 a recently add in Sales tax return . It assumes that we adjust our input tax against 4 % output tax charge to unregisterd person and claim net refund and in case of 4 % is > than 17 % input tax we will submit the difference amount . - Sajjad R1 - 07-15-2011 salam dear Its a rule in case of zero rated supplies the reg person can claim for input tax but in case of exmpted supplies the reg person cannot claim for input tax |