VAT PAYABLE

[ramya sriram]

CAN THE PURCHASE VALUE BE MORE THAN THE SALES VALUE & THE RESPECTIVE PURCHASE VAT IS LESS THAN THE OUTPUT VAT.

IF THIS IS THE CASE THEN HOW IS VAT PAYABLE

[Ganeshan Kalyani]

Ms. Yes the purchase value can be more than the sale value and yes the VAT on purchase be less than the VAT applicable on sale. This is so because the rate of VAT is applicable based on the Schedule Entry of respective VAT Act. In your case the VAT applicable on purchase attracts lesser rate whereas on sale the higher. Hence one cannot corelate logically but has to go through as per rules. Thanks.