01-20-2010, 01:50 PM
Dear all,
I got a situation where a service providing company is going to incur capital expenditure for replacing its current IT system with a new one. New IT system will comprise of hardware and software etc.
From this capital expenditure the company will generate taxable service via e-commerce subject to FED. Presently, the company is registered as FED payer and not registered as sales tax payer.
Please tell me if the company gets itself registered with sales tax, would the sales tax paid on the purchase of hardware and software be adjustable or refundable against the FED charged to its clients.
Please also tell whether the sales tax paid by the company can be adjusted with FED charged to the clients.
Regards,
*
I got a situation where a service providing company is going to incur capital expenditure for replacing its current IT system with a new one. New IT system will comprise of hardware and software etc.
From this capital expenditure the company will generate taxable service via e-commerce subject to FED. Presently, the company is registered as FED payer and not registered as sales tax payer.
Please tell me if the company gets itself registered with sales tax, would the sales tax paid on the purchase of hardware and software be adjustable or refundable against the FED charged to its clients.
Please also tell whether the sales tax paid by the company can be adjusted with FED charged to the clients.
Regards,
*
