Whether the following states follow "Gross Product Variant" or "Income Variant" or "Consumption Variant" of VAT to take credit of VAT on capital goods
1.Gujarat
2.Rajasthan
3.Madhya-Pradesh
4.Punjab
5.Uttra-Khand
6.Karnataka
Tanmay Kabra (Sr. Executive - Audit) (94 Points)
05 February 2016Whether the following states follow "Gross Product Variant" or "Income Variant" or "Consumption Variant" of VAT to take credit of VAT on capital goods
1.Gujarat
2.Rajasthan
3.Madhya-Pradesh
4.Punjab
5.Uttra-Khand
6.Karnataka
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 05 February 2016
I think consumption variant is used across India because input credit is allowed on capital goods as well as input goods. In Karnataka, consumption variant is adopted.
Tanmay Kabra
(Sr. Executive - Audit)
(94 Points)
Replied 06 February 2016
Since our consultant of Gujarat is not taking credit on capital goods, so can you please make me sure by any reference(if available) that consumption variant is used across all India.
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 06 February 2016
I think ITC can be availed on capital goods under GVAT provided it is not used in office etc. For more details:
https://taxpaisa.com/vat-credit-on-capital-goods-in-india/
/articles/a-comprehensive-note-on-input-tax-credit-under-gujarat-vat-995.asp
surya teja
(ipcc)
(21 Points)
Replied 13 February 2016
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