Skip to main content
Taxes

Pro rata rule

VAT systems typically allow for a credit on input tax, which refers to the VAT previously paid on goods and services. This credit can be claimed when these items are used in taxable or exempt transactions, as long as the total transactions take place within a calendar year. This credit helps to alleviate the burden of double taxation and promotes efficiency in the VAT system.

Related terms

Entity

Understand the meaning and definition of Entity in the context of stock market, trading, and investments.

MORE
Accounts payable

Understand the meaning and definition of Accounts payable in the context of stock market, trading, and investments.

MORE
Fee

Understand the meaning and definition of Fee in the context of stock market, trading, and investments.

MORE
Tax expenditure

Understand the meaning and definition of Tax expenditure in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91