A MANUFACRURAR PURCHASES MATERIAL @ 4% VAT AND AFTER MANUFACTURING OF FINISHED GOODS HE EXPORT THE GOODS. WHETHERE HE IS ELEGIBLE FOR VAT CREDIT ? IF YES ? WHICH AMOUNT ?
IF CREDIT IS AVAILABLE WHAT ARE BENEFIT TO GOVT.
THANKS
A MANUFACRURAR PURCHASES MATERIAL @ 4% VAT AND AFTER MANUFACTURING OF FINISHED GOODS HE EXPORT THE GOODS. WHETHERE HE IS ELEGIBLE FOR VAT CREDIT ? IF YES ? WHICH AMOUNT ?
IF CREDIT IS AVAILABLE WHAT ARE BENEFIT TO GOVT.
THANKS
CA.Praveen Ponnappa
(CA PRactice)
(128 Points)
Replied 11 January 2012
Yes Input VAT is available on materials used for manufacture of the goods which is exported out of India as per VAT law. This provision of the Govt is to encourage exports as export increases the foreign exchange inflow to the country.
Yatender Sharma
(Senior Accountant)
(146 Points)
Replied 13 January 2012
Yes, Agree with consultant
In both cases Manufacturer eligible for Vat Credit
CAclubindia
