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Mvat on capital in progress

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)

16 July 2016

Friends,

Whether Mvat set off on capital work in progress to be taken in the year when capital goods ready to use or in the year of invoice date ?

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2 Replies

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 16 July 2016

VAT is chargeable on the invoice amount or on the advances received with respect to WIP.Subsequently the tax paid on advances can be adjusted against the value of work shown in the following invoice/s........mjk

sandesh naringrekar (service) (79 Points)
Replied 21 July 2016

VAT is chargeable on the Tax invoice purchase amount and the nature of purchase in Capital goods or CWIP. (rule 53 applicable).

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