OUTPUT TAX AND INPUT TAX

[abhishreshthaa]

OUTPUT TAX

It is tax on the sale of goods in the state and payable according to the provisions of the state law.


It does not include any tax payable on:


• On any sale outside the state; or


• On any interstate sale.




INPUT TAX


Sales tax paid on the purchase of goods in the course of business for:


• Resale, or


• Manufacture of taxable goods, or


• Use as containers or packing material, or


• The execution of works contract,


Is the input tax, for which credit may be available as explained hereafter

 

[jitendra05]

OUTPUT TAX

It is tax on the sale of goods in the state and payable according to the provisions of the state law.


It does not include any tax payable on:


• On any sale outside the state; or


• On any interstate sale.




INPUT TAX


Sales tax paid on the purchase of goods in the course of business for:


• Resale, or


• Manufacture of taxable goods, or


• Use as containers or packing material, or


• The execution of works contract,


Is the input tax, for which credit may be available as explained hereafter

Hey abhi, i read your article and finally say that it has explained the concept of output and input tax very nicely. BTW, i have also got a document and would like to share it with you so that more and more content can be added in your thread.