alleryStart learning →A dealer owes central tax Rs 30,000 and holds only State tax credit of Rs 25,000. What cash does he pay?
ARs 5,000
BNil
CRs 30,000
DRs 25,000
Answer & Solution
Correct answer: C. Rs 30,000
State tax credit cannot pay central tax, so the entire 30,000 central tax liability is paid in cash.
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