Answer Posted / arjun tomar
INPUT MEANS WHO RECEIVE THE TAXES THAT IS CALLED INPUT TAX AND OUTPUT TAX MEANS WHOM ARE GIVING TO ANOTHER PERSON IS CALLED OUTPUT TAX, BECAUSE IT'S GOING FROM YOUR SIDE
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I am a civil Engineer consultant. On an item for example Rs.100, I am adding 4%WCT ie., Rs.4 and I am certifying the contractor bill for Rs.100.00 + Rs.4.00 = Total Rs.104.00. But my client is deducting 4% on Rs.104.00 ie., Rs. 4.16. So, finally contractor is losing Rs. 0.16 on Rs. 100 which amounts to lakhs on the project value. Can you please guide me on this? Santosh Kumar
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