Credit of vat on fixed asset

Save Share

This query is : Resolved

Sanjeev Parasrampuria (Querist)
Follow

08 June 2012 Dear Sir,

Whether VAT on Fixed Asset total credit available in the same year in which asset is purchase in MVAT Act?

Ki$hor B

Ki$hor B (Expert)
Follow

08 June 2012 All registered dealers, whether manufacturer or traders, eligible to take full set off of the taxes paid on inputs i.e. Value Added Tax paid, within the State of Maharashtra, on purchases of Raw Material, Finished Goods and Packing Material.
Entry Tax: – The amount of entry tax, paid by a registered dealer on the goods the sale of which is liable for VAT under MVAT, will be eligible for full setoff.
ITC on Capital Goods: – Tax paid on certain items of capital goods (defined) such as machinery, components, parts and spares etc. are also eligible for full set off. In case of furniture & fix. retention of 3% is to be made
ITC on Miscellaneous Goods: – The amount of Vat paid on purchase of miscellaneous goods, debited to Profit & Loss A/c (such as printing and stationery, repairs, sales promotion etc.) also eligible for full set off.

Message likes : 1 times

Dayal

Dayal (Expert)
Follow

09 June 2012 There is no restriction on vat input credit on capital goods being machinery. Full credit in the same period on receipt of such goods. However furniture fixture and few category treated as capital good a partial retention is applicable being 3%