09 November 2007
Respected sir my quetion is simple what is treatment of VAT input Tax paid for purchase of capital assest Whether can we adjust the out put tax of vat when we sale the above assest
what is treatment of out put tax clooected on sale asset
10 November 2007
vat paid on capital goods can be taken as input tax credit immediately and can be adjusted against the output tax payabe for a particular month. at the time of sale of such capital asset output tax to be collected and paid.
28 November 2007
I agree with the views of CA Mr Raviprakash M S. But, the treatment of input tax paid on purchase of said capital asset also depends on type of asset i.e. it has to be bifurcated as business use or personal use as the case may be. Moreover, the date on which the said asset is put to use is also important. The input tax can be adjusted against tax payable & tax collected on sale of asset is to be treated in the same way as tax collected on normal sales.
CAclubindia
