What Is Input Tax?

Posted 1 year ago  | 
General Legal,Taxation & Duty
General Legal Taxation & Duty

1 Answer(s)

Vishal Kumar Thakur
Advocate

The tax you pay on your purchases is input tax. Many of the things you buy will carry VAT charge, but if you are registered under VAT you can normally claim a credit for the VAT charges on most business purchases. It includes not only the VAT on your purchases of raw materials or on goods purchased for resale, but also the VAT on things like Capital goods, such as machinery or equipment for use in the business.