Capital Goods
This query is : Resolved
Prashant D Mane
(Querist)
28 October 2009
Hi
I will be grateful who will give me the correct suggestion on my doubt-
I, Prashant D Mane, Newly Joined a Pvt. Ltd. Company. Company is a manufacturer of Machineries used in News Paper Industry. As the Machineries being used in a news paper industry, the co. charges MVAT @ 4% on its sale. The co. justify that it is a capital expenditure for any Newspaper Industry therefore the machineries falls under "Capital Good" Schedule entry.
Is it right or wrong ?
Pls. Reply
I will be grateful who will give me the correct suggestion on my doubt-
I, Prashant D Mane, Newly Joined a Pvt. Ltd. Company. Company is a manufacturer of Machineries used in News Paper Industry. As the Machineries being used in a news paper industry, the co. charges MVAT @ 4% on its sale. The co. justify that it is a capital expenditure for any Newspaper Industry therefore the machineries falls under "Capital Good" Schedule entry.
Is it right or wrong ?
Pls. Reply
CA SANJAY MUKHERJEE
(Expert)
28 October 2009
Hi Prashant,
Schedule C shows the item attracts 4% Vat and I could not find any machinary except agricltural machinary.
News print and Paper is taxable @ 4% bit that does not mean that anything used for production of News print will also be taxed @ 4 %. I suggest you to have a look at Schedule C and then decide.
In my opinion it is wrong.
Schedule C shows the item attracts 4% Vat and I could not find any machinary except agricltural machinary.
News print and Paper is taxable @ 4% bit that does not mean that anything used for production of News print will also be taxed @ 4 %. I suggest you to have a look at Schedule C and then decide.
In my opinion it is wrong.
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