Briefly explain the income variant of VAT. The income variant of VAT allows for deductions of purchases of raw materials and components as well as depreciation on capital goods. This method provides incentives to classify purchases as current expenditure to claim set-off. In practice, however, there are many difficulties connected with the specification of any method of measuring depreciation, which basically depends on the life of an asset as well as on the rate of inflation.
Posted on: Sun, 11 May 2014 13:00:00 +0000
Trending Topics
Recently Viewed Topics
© 2015