Input tax credit

[saket s]

Dear Sir,

Whether input tax credit of VAT is available in case of penultimate sales under Punjab VAT?

AI Summary

Refund of Input Tax Credit Possible for Penultimate Sales Under Section 18(2) of Punjab VAT Act 2005 A query was raised regarding the availability of input tax credit (ITC) for VAT in penultimate sales under the Punjab VAT Act. The response clarified that a refund of ITC is possible for penultimate sales under the PVAT Act, 2005. This typically applies to exporters or those involved in penultimate exports, as such sales are zero-rated and not subject to VAT. The tax paid on goods intended for export can be refunded under section 18(2) of the PVAT Act. Refunds can be issued via voucher or adjusted against future tax liabilities as per sections 39(1) and 39(2).