Capital purchases in ap vat returns

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This query is : Resolved

Satish Makam (Querist)

26 November 2012 Dear friends,

we are establishing a power generation unit in andhra pradesh. It is in capital work in progress. so, my doubt is, is it required to show the capital purchases in vat returns or not.

If we file 'nil' vat return, with out showing any purchases , department will issue notice for cancellation of VAT registration for non commencement of business. please guide me in this regard.

Examples of capital purchases:

plant & machinery, air cooled conditioners, office furniture , computers etc.

is it required to show land purchase in the VAT returns.

CA. Hari Kishan

CA. Hari Kishan (Expert)

26 November 2012 With regard to the disclosure of purchase of capital goods, you may note the following:

If purchases of such capital goods are made interstate and you are required to issue FORM C , then i would advise you to disclose the same in your VAT returns. Also if such capital goods are purchased locally, then for claim of VAT input tax you may disclose the same.

Purchase of land is not required to be disclosed in the VAT returns as the same are not goods and does not form part of turnover.

Satish Makam

Satish Makam (Querist)

28 November 2012 Thank you hari kishan,
As for Land is concerned, it is very clear with your explanation.

In our case, the output is exempted from VAT and excise duty.

Then how to show VAT for local purchases

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