Vat on purchase of fixed assets.

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2015 Dear Sir,
I purchase some fixed assets for set up my new business. The seller refused to give me the tax invoice because of I am the customer not trader for him. Can I take Input Tax Credit on those purchase. Please suggest me what is the correct process to follow on this case.

Thank You.

Amol S Joglekar

Amol S Joglekar (Expert)
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16 December 2015 01. You can NOT claim input credit/set off on the VAT paid on fixed assets.
02. It is always advisable to take VAT invoice.

CA Komal Puri

CA Komal Puri (Expert)
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16 December 2015 You can take VAT credit on purchase of Fixed Assets only if the seller issues you a Tax invoice.
If it is for the purchase of Plant & Machinery/Dies and Molds/ Tempos or the Fixed Assets which are directly used for use in factory only then can you claim 100% set-off. If the Fixed Assets consist of Furniture, Computers etc which are not used in the factory you can claim set-off after 3% retention. But if your dealer has not issued TAX invoice you cannot claim credit.