Vat credit on job work

CA Devendra Yadav (Audit Manager) (82 Points)

30 August 2013  

Can we take credit of VAT on job work charges by a job worker (i.e printing charges)

For Example:

Printing      = Rs 5000 (Includes Labour & Material)

DVAT (5%)=     Rs 250

Total           =Rs 5,250

 

Can we take VAT credit of Rs 250 as VAT Input

TDS also deducted by the Client (TDS amount is Rs 105 i.e 2% on Rs 5250)