Consumble goods of hotel accounts in vat (VAT)

This query is : Resolved

Author : Anonymous

( Author )
16 June 2012

How can mentioned in vat returns of Hotel account purchase of consumble goods including URD purchases and other purchase, we paid VAT @14% on Food bills of Karnataka VAT. We will claim an in put vat of VAT purchases.

MJ Krishnamurthy

( Expert )
17 June 2012

Mr Author,
Tax paid on consumables can not be claimed as input tax. But the term 'Consumables' is a broad term.One has to specify the goods an the process or work related to it.However, materials such as fuel,cooking gas,cleaning soaps and solutions,disinfecting chemicals etc are not directly utilised in making the hotl products. So,they are consumables and tax paid on their purchases can not be claimed as ITC. Such disentitled tax has to be deducted in col 10 of form vat100...MJK