( Querist )
27 January 2009
my querry is regarding input tax on capital goods under karnataka valu added tax act.
we are running a coffee curing works,where we are doing hulling work for curing charges, where we get coffee husk which attract a vat of 4%. but we purchase a machinery for sorting and grading worth Rs. 20,00,000 in which input vat is 80,000. that we adjusted towards vat payable on sale of husk. after vat audit the concerned authorities were disallowed the input tax credit claimed by us instead they are allowed partial rebate as they considered the month of purchase and curing charges collected
i want to know whether sales tax authorities were right or wrongs
send ur reply urgently