Under which method of computation of VAT, the tax rate is applied to the difference between the value of output and the cost of input

CS Executive · Tax Laws and Practice · PYQS · December 2015
Under which method of computation of VAT, the tax rate is applied to the difference between the value of output and the cost of input
(A) Tax credit method
(B) Bonus method
(C) Addition method
(D) Subtraction method.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: VAT (Value Added Tax)

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