Variant of Value Added Tax (VAT), Indirect Tax Laws Video Lecture | Indirect Tax Laws - B Com

value-added tax part 3 in this part we
are going to study what are the three
variants of that to understand the
variant of that first we have to
understand how the tax credit system
book let's assume there is one
manufacturer this manufacturer purchase
goods
suppose he purchase goods of rupees 100
and he also purchased one machine a
machine head machine he purchased for 1
lakh rupees now as we see that while
selling seller has to charge the VAT
suppose raw material pay Java ta ki
manufacturer net the time of purchase
paid to the seller is 10 rupees this is
the tax paid on input raw material again
while purchasing the machinery for 1
lakh rupees he also paid tax of 10
thousand on purchase of machinery so tax
paid on machine purchase was ten
thousand rupees and tax paid on raw
material is 10 rupees assume that he
manufacture a product and sell this
product add rupees 150 150 dub sell
Goethe head again at the time of sale he
will have to pay a tax of 15 rupees at
the rate of 10 percent but as we have
already seen that selling price or
purchase price casual difference rata
Eskew per taxpayer narrative at system
so 150 - purchase price 150 rupees ke
upar 10 percent gaze up say he has to
pay tax of
Pease five only under bad cook it raw
material pay credit Milka now it's good
to see little si calculate kar sakthe 15
rupees 150 pay tax liability here or is
co-credit melt ahead at the time of
purchase job is latex pay keyattr 10
rupees busca credit mil data and the
liability to pay tax comes five rupees
so in this example we have seen ki get
10 rupees cash or credit milega raw
material purchase with your tax Paquita
whose make we be dispute in here the
question comes he has purchased machine
also or his machine co purchase querque
he's using it in the manufacturing of
this product so whether he is eligible
for a credit of ten thousand also which
he has paid tax at the time of purchase
of machinery get ten thousand kabhi
credit milega
ena milega this is what we have to
understand the raw material ratha hai
usko Humbolt a input or skew per your
text pay here at the high school the
input tax input tax secondly capital
goods machine is a capital good capital
good pitcher tax P P kyrat ahead who say
bowling a capital goods tax tax on
capital good now input tax credit Milty
here there is no doubt about that
but whether the tax credit on capital
good will be available or not yet ten
thousand a credit be is camila guy in
discharging his tax liability or not we
have to see this and this is what the
basic concept of variance so how to give
tax credit on sales tax paid at the time
of purchase purchase of what purchase of
input and purchase of capital good input
up chaos at their raw material Jagr up
trading the length of trading goods
video up they purchase cat i'm
peek-a-boo so both are called inputs and
capital goods lie
machinery etc which you will use for a
long term while manufacturing this now
three variants of that are gross product
variant income variant and consumption
variant in the--not variant may input
tax credit allowed here but capital
goods pager taxpayer veau credit differ
Goethe T no variants gross product
variant may capital goods page open a
taxpayer have allowed nahi creditors
Colonel SATA income variant may it is
allowed but in proportion to
depreciation charge sohara solid in the
proportion may have depreciation charge
karthiyaini
whose proportion may up Co is calculated
molera consumption variant may it is
fully allowed so let's see that machine
you had purchased machine after purchase
key T one lakh rupees may or one lakh
rupees Q / update ten thousand of net
tax Pakeha whether this tax Japan Keokuk
red Malaysia teen variants may let's see
subsequently at ahead gross product
gross product variant is may yet and
thousand droplet Expedia is calculated
nahi milta second data high-income
variant income variant may they says
that ten thousand Copco available here
but in proportion to depreciation charge
so for example agar up ten percent
depreciation Hershel Charge Card ahead
to up go get ten thousand cut ten ten
percent Gergely OpCo credit Malaysia to
pay less all ten percent in a thousand
for a glacial ten percent and again
thousand thousand Esther Asarco
depreciation key proportion Malaysia in
income variant and last come consumption
consumption variant in consumption
variant year up Co ten thousand accredit
immediately mill that I have fully
available no restriction at all
so these are the three variants of that
question at the exam so you have to
understand it properly again just you
have to keep in mind that credit on tax
paid on input is allowed in all the
three variants it is only the difference
of allowing the credit of tax paid on
capital good is different in all the
three variants now we will see each
variant one-by-one gross product variant
deck develop gross product variant bear
as we have already seen that tax credit
nahi milta capital goods pay though is
scheduled demerit say working capital
gets eroded up to extra pestle agon
Aperta businessman curious current name
is kaput Expedia sufficient money is not
available to replace the capital goods
product costs increases yogi OpCo great
name is nicely up get your product costs
a vote increase who jockey him escape
addicted income variant income variant
may we have seen that key is may OpCo
capital goods PTO taxpayer whose
calculated melt ahead but in proportion
to depreciation this major depreciation
major milta this is the demerit DEP deaf
difficulties may arise in computation of
depreciation amount because there are
different methods of depreciation consi
method loggin gap there are different
methods so again there is a confusion
life of capital good is not sure
depreciation calculate Carnegie Lee a
pal a aapko life estimate garner a TA
and that is also very difficult task to
estimate the life of the machine
a uniform depreciation formula cannot be
prescribed for any particular for all so
this is these are the demerits of income
variant Escobar basket and consumption
variant
consumption variant cup merits Java ham
so let's talk about merits hundred
percent credit available as a raw
material baby hair capital good baby
hundred percent day no classification
dispute cure
the opcode total Baraka pure credit
million a capital goods or raw material
better differentiation can make is
Rodney eggie capital good heya robert
real hell so classification dispute
NYADA going to plenty of credit
availability know a region of working
capital working capital up kind tech
rhetoric UK open Adobe pass up a key rat
attacks may capital routes caper Guapo
credit Millia sufficient funds are
available for replacement of plant and
machinery there will be substantial drop
in the product cost and because you get
the credit the final job product costs
appear whoa be reduce oddity M of the
three variant discussed this is the best
variant consumption variant is the best
and all states almost adopt this variant
only