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Input Tax Credit (ITC) under VAT

ajay garg (Service) (74 Points)

16 November 2007

As per the VAT, within state purchases of inputs (some exception), input tax credit is avaiable and the same will be account far against out put tax. My question is that

" if any input which is purchased with state for use in captive power plant, shall input tax credit will be available or not????

Regards
Ajay Garg

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12 Replies

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 17 November 2007

As I understood, you are using the puchased goods in processing or selling of exempted goods or items which are out of the purview of goods (as per Assam VAT Act,electricity is not goods). Hence acordingly, I am of the opinion that no ITC is available in your case.

SAMEER (CHARTERED ACCOUNTANT) (304 Points)
Replied 18 November 2007

yes ofcourse as far as state of Chhatisgarh is concerned

Vijay K. Agrawal (Service) (608 Points)
Replied 22 November 2007

Dear Ajay Garag, in case of captive CPP you will get Input tax credit on input purchased within state

Naveen Khurana Adv (Tax Advocate) (30 Points)
Replied 28 November 2007

dear ajay ! Please mention ur state in question ?? from Adv Naveen Khurana

(Guest)

can we claim cenvat credit for purchase of gold in tamilnadufor business promotion, if i m a registered with tamilnadu's VAT act

(Guest)

i m not doing trading of gold

(Guest)

sir

my question is that what rates is applicables on HYDRENT SYSTEMS under ITC

when Items cost is Rs-1903200 Vat 76128

rama krishna (finance manager) (36 Points)
Replied 17 June 2009

dear all

kidnly clarify my doubt reg ITC for the following situation

company has two segments of its operations. 1 is manufacturing and trading 2. is purely trading.

at the time of VAT return submission, figures are being aggregated and submitted. however, we have encountered with the situation where our ITC for the trading division is proportionately reduced by applying A/B*C formula (applicable where company has both taxable and exepted turnovers).

is it necessorty to reduce the ITC available in trading division as per the formula applicable for manufacturing and trading division.

HarkanwalSingh (Indirect Tax Manger) (22 Points)
Replied 24 September 2010

A factory can avail ITC on diesel / lubricants used for captive generation of power but a trader [except for traders in these comodities] is not given same treatment. For factory raise TAX invoice & for trader raise retail invoice.

Thanuja (Senior Accounts Officer) (24 Points)
Replied 18 May 2011

Under Karnataka VAT, input tax of a bill of Feb 11, can be taken credit in the month of April/May 11 (Year & Quarter changes)? Pls. provide me a notification relating this.

Thanuja (Senior Accounts Officer) (24 Points)
Replied 18 May 2011

Under Karnataka VAT, input tax of a bill of Feb 11, can be taken credit in the month of April/May 11 (Year & Quarter changes)? Pls. provide me a notification relating this.

Pankaj Pathak (Manager-Finance) (27 Points)
Replied 15 March 2012

1.Whether Franchisee of MLM(Multi level Marketing) company can avail Input Tax Credit against purchase & sale the products in the state Assam ?

Note: Franchisee receives Tax Invoice from the Branch office but Franchisee issue the order Form(Value inclusive of Tax) (as prescribed & rule by the Company) against sale to distributors .

2.Whether output Tax Invoice is mandatory for availing Input Tax Credit against purchase of Tax Invoice ?