Input Tax Adjustment

[ayub]

on which payments a Service sector company can claim input tax adjustments against its out put tax liability.

Particularly when it is very difficult to ascertian the cost of services/ direct cost of the services.

Could any one specify the case laws, on which basis for input tax adjustments could be clear.

[KK]

Procedures and requirements of claiming the input tax for service provider is same as that for registered suppliers. Input tax can be claimed for all servics on which the claiment have suffered output tax.
If the person with taxable services / supplies is also providing services which are exempt from sales tax or no output tax is payable than only input tax attributable to taxable supplies /services can be adjusted againt output tax.

KK.



Edited by - KK on Feb 22 2003 10512 PM