Recoverable and Non Recoverable Tax

[eswar_chinni]

Hi all

Can any one brief about Recoverable Tax and Non Recoverable Tax

[cnubandi]

A <font color="red"><b>recoverable tax </b> </font id="red"> is a tax that allows full or partial recovery of taxes paid on purchases, either as a recoverable payment or as an offset against taxes owed. For example, most VAT-type taxes allow for full recovery of taxes paid on goods and services that relate to taxable business supplies. In cases where an organization purchases both taxable and exempt supplies, the tax authority can designate a partial recovery rate to reflect the combination of taxable and exempt statuses.

<font color="red"><b>Non-Recoverable Tax</b></font id="red"> that record tax amounts on earned and unearned discounts and adjustments that you cannot claim as a deduction against tax liability.