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Is Input Tax Debit or Credit in Law

As per Lawkidunya, the case you refer here is called as “input tax credit” i.e when the tax paid on inputs exceed tax collected on sales made. In such case, the excess tax( input tax credit) shall be debited. You can carry forward this debit balance since it’s “VAT refundable” and shown as current assets in the Balancesheet.

Section 8B of Sales Tax Adjustable Input Tax in Law

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