Sino Grandness

[Young Investor]

Hi Mr Boon,

I read your post 1123 several times.

Your point:
"Also, I don’t see why VAT (for purchase of equipment for factory A) could not be deducted against output VAT (for selling beverage produced by factory B) – if both factory A & B are owned by the same entity."
was made to counter Portuser point:
"The newest operating factory you referred to is the Hubei factory costing around RMB 500m. The factory will have to sell RMB 500m worth of products to wipe off the trade receivables paid for the construction."

You were asking why Hubei factory has to wait for its own output VAT to offset input VAT paid for equipment; and why not straightaway offset input VAT against output VAT of another factory that is already selling beverage.

Were you mistaken that the Hubei factory and another operating beverage belong to one subsidiary? But earlier, it was made known in post 1118 that "Sino Grandness sets up subsidiary to build and own new factory."