(1)The net tax payable by a registered dealer for a tax period shall be difference between the output tax and the input tax, which can be determined from the following formula:Net tax payable = O - IWhere 'O' denotes the output tax payable for any tax period on the taxable turnover at the rates specified in the Schedule and subject to such conditions as may be prescribed from time to time and 'I' denotes the input tax paid or payable under this Act for the said tax period by such dealer to another registered dealer on the sale to him of any goods for resale or use in manufacturing or processing of goods for sale or purchase by him of goods mentioned in schedule VIII for resale or use in manufacturing or processing of goods for sale ['or purchase by him of goods mentioned in schedule VIII for resale or use in manufacturing or processing of goods for sale.'] [Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)]Explanation. - Value Added Tax (VAT) is a multi point tax payable by manufacturer, processor, wholeseller and retailer on the value added on each point of sale with provision for credit of tax paid during purchase ['and also on each point of purchase of goods as mentioned in schedule VIII with provision for credit of tax paid during previous transaction.'] [Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)]
