Question

For a registered dealer, if input tax is ₹ x and output tax is ₹ y, then the input tax credit for the dealer is ______.

Options

• ₹ x

• ₹ (x – y)

• ₹ (y – x)

• none of these

Answer 1

For a registered dealer, if input tax is ₹ x and output tax is ₹ y, then the input tax credit for the dealer is ₹ (y – x).

Explanation:

Input tax credit

= Output tax – Input tax

= (y – x)