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

Tax burden

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

MORE
Avoidance

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

MORE
Soak-up tax

Understand the meaning and definition of Soak-up tax in the context of stock market, trading, and investments.

MORE
Single taxpayer

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

MORE
Overhead expenses

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

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers