Eligibility of input vat credit

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This query is : Resolved

bhaskar (Querist)

22 June 2016 Head office is situated in Mumbai and it is transferring goods to the warehouse situated in KARNATAKA by issuing FORM-F and that warehouse is registered dealer under VAT provisions of the respective state VAT LAWS.
Then the other company (named XYZ PVT LTD) will buy goods from such warehouse dealer after getting the invoice generated….The point of dispute is whether XYZ PVT LTD can claim INPUT VAT CREDIT for those purchases from that registered warehouse, even though actual payment has not been done as the HEAD OFFICE situated in MUMBAI and XYZ PVT LTD are sister concerns????
Can you please resolve this issue….as early as possible

Rupesh Jain

Rupesh Jain (Expert)

22 June 2016 vat input not related to the payment if ware house issue the vat invoice registered with vat act under in which state ware house situated and then same state buyer can get the input if the buyer will eligible for that items buying.

bhaskar

bhaskar (Querist)

22 June 2016 If the payment has not been made w.r.t the warehouse dealer, then is it possible to claim INPUT CREDIT by XYZ PVT LTD (as earlier mentioned company name)

Rupesh Jain

Rupesh Jain (Expert)

22 June 2016 sir vat is not related to the payment, if buy not giving you money he buy the goods and go under ground or declare himself insolvent then he can get the vat input.

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