WHAT IS THE AMOUNT OF INPUT TAX CREDIT THAT CAN BE CLAIMED BY ME IF EXEMPT SALES ARE NEGLIGIBLE?
Where the value of taxable sales is 95% or more of the total value for that tax period, you can claim credit for the full amount of input tax paid on purchases excluding the tax paid on purchase of goods mentioned in negative list. You are not required to file any declaration every month but you should make annual adjustment by filing Form VAT 200 B in the month of March by following the calculation mentioned in answer to Question No.2.
