Input adjustment zero rate

[Anfal Shabbir]

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