VAT PAYABLE

[Asked by Guest]

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

AI Summary

VAT rate disparity can make purchase value exceed sales value while input VAT is lower than output VAT.
Such a situation is permissible because applicable VAT percentages derive from statutory schedule entries; differing classifications at purchase and sale can produce lower input VAT despite a higher purchase price, so VAT consequences must be determined by applying those rate classifications and relevant procedural rules.