Sales Tax Rules, 2006

CHAPTER-IV

APPORTIONMENT OF INPUT TAX

Sales Tax Rules, 2006 CHAPTER-IV APPORTIONMENT OF INPUT TAX From: 2025-01-01 - To: 0000-00-00 25. Determination of input tax.- (1) Input tax paid on raw materials relating wholly to the taxable supplies shall be admissible under the law. (2) Input tax paid on raw materials relating wholly to exempt supplies shall not be admissible. (3) The amount of input tax incurred for making both exempt and taxable supplies shall be apportioned according to the following formula, namely:- Residual input tax credit Value of taxable supplies on taxable supplies = ------------------------ x Residual input tax (Value of taxable + exempt supplies) (4)…