capital goods
This query is : Resolved
subramanian
(Querist)
07 March 2010
dear sir,
i there is any case law inthis matter. pls send the same.
dear sir,
my client purchased a generator wholly used for the manufature of our products. and taken the input tax credit on the generator purchase. pls inform that the generator is a capital goods or not, and are eligible for ITC.
i there is any case law inthis matter. pls send the same.
dear sir,
my client purchased a generator wholly used for the manufature of our products. and taken the input tax credit on the generator purchase. pls inform that the generator is a capital goods or not, and are eligible for ITC.
CA Umesh Sharma
(Expert)
07 March 2010
Under MVAT ruels 2005, Setoff is available on Plant and Machinery. Generrator purchased if capitalised under the head Plant and Machinery or Electricals, is eligible for full settoff.
Ram Avtar Singh
(Expert)
07 March 2010
yes,its a capital items.
07 March 2010
As u have purchased the asset for manufacturing process. i.e installed in the factory. Then u can take Input Tax Credit provided at the time of audit u have to explain the generator is used for manufactur.
subramanian
(Querist)
08 March 2010
dear sir,
i there is any case law inthis matter. pls send the same.
i there is any case law inthis matter. pls send the same.
K Bala Kishan
(Expert)
09 March 2010
Dear Subramanian,
As such, in Andhra Pradesh, (Generator used for the purpose of Manufacturing) Generator is a Negative List Item and cannot be claimed as VAT Input Tax Credit inspite of the Capital item in nature. Even the expenses incurred or hire charges for such Generator are not allowable and even though u claim in VAT Input Tax Credit the Department will disallow the same and impose penalty for such.
Regards,
Balu
As such, in Andhra Pradesh, (Generator used for the purpose of Manufacturing) Generator is a Negative List Item and cannot be claimed as VAT Input Tax Credit inspite of the Capital item in nature. Even the expenses incurred or hire charges for such Generator are not allowable and even though u claim in VAT Input Tax Credit the Department will disallow the same and impose penalty for such.
Regards,
Balu
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