Haryana vat
This query is : Resolved
07 September 2013
our company had been purchase a machinery in haryan . company charge 5% vat on capital goods.machine value :-235158 5% vat:-11758.
we can claim 5% vat.
please clear the vat amount credit.
please suggest me.
thanking you.
we can claim 5% vat.
please clear the vat amount credit.
please suggest me.
thanking you.
10 September 2013
please solve my problem.
27 July 2024
In Haryana, VAT (Value Added Tax) regulations apply to the purchase of capital goods, and you are correct in seeking to understand the process of claiming VAT credit on such purchases. Here's how you can handle VAT credit on capital goods under Haryana VAT laws:
### **1. **Eligibility for VAT Credit on Capital Goods:**
- **VAT Credit Claim:** As per Haryana VAT Act, businesses are allowed to claim VAT credit on the purchase of capital goods. The VAT credit can be utilized to offset VAT payable on the sale of goods or services.
### **2. **How to Claim VAT Credit:**
- **Purchase Details:** You mentioned that your company purchased machinery valued at ₹2,35,158 and paid 5% VAT, which amounts to ₹11,758. This VAT amount is eligible for credit.
- **Invoice Verification:** Ensure that you have a proper VAT invoice from the supplier showing the VAT amount paid. The invoice should include the supplier’s VAT registration number, the VAT amount charged, and other relevant details.
### **3. **Recording VAT Credit in Books:**
- **Accounting Entries:** Record the VAT amount in your accounting books as follows:
**Dr. Capital Goods Account ₹2,35,158**
**Dr. VAT Input Credit ₹11,758**
**Cr. Bank/Cash ₹2,46,916**
This reflects the purchase of machinery and the VAT paid. The VAT input credit will be recorded in the VAT ledger for future set-off.
### **4. **Filing VAT Returns:**
- **Include in VAT Return:** When filing your VAT returns, include the VAT credit claimed on capital goods. In Haryana VAT returns, this is usually done under the section for input tax credits.
**a.** **Monthly/Quarterly Return:** Include the VAT credit amount (₹11,758) in the input tax credit column of your VAT return form.
**b.** **VAT Returns Form:** Ensure that you file the VAT return form (VAT Form-1, VAT Form-2, etc.) correctly, including the details of VAT paid on capital goods and the input credit to be claimed.
### **5. **Utilizing VAT Credit:**
- **Offset VAT Liability:** The VAT credit claimed can be used to offset your VAT liability on sales. This means you can reduce the VAT payable on your sales by the VAT credit amount.
### **6. **Documentation and Compliance:**
- **Maintain Records:** Keep all documentation related to the purchase and VAT credit claim, including invoices, payment receipts, and VAT return forms, as these may be required during audits or inspections.
- **Compliance:** Ensure compliance with all Haryana VAT regulations and any specific guidelines related to claiming VAT credit on capital goods.
### **Summary:**
1. **Claim VAT Credit:** You are eligible to claim VAT credit of ₹11,758 on the machinery purchase.
2. **Record Transactions:** Properly record the transaction and VAT credit in your books.
3. **File VAT Return:** Include the VAT credit in your VAT return for the applicable period.
4. **Maintain Documentation:** Keep all relevant documentation for verification and compliance.
**Note:** Always refer to the latest Haryana VAT Act and consult a tax professional for detailed guidance specific to your situation and to ensure compliance with the current regulations.
### **1. **Eligibility for VAT Credit on Capital Goods:**
- **VAT Credit Claim:** As per Haryana VAT Act, businesses are allowed to claim VAT credit on the purchase of capital goods. The VAT credit can be utilized to offset VAT payable on the sale of goods or services.
### **2. **How to Claim VAT Credit:**
- **Purchase Details:** You mentioned that your company purchased machinery valued at ₹2,35,158 and paid 5% VAT, which amounts to ₹11,758. This VAT amount is eligible for credit.
- **Invoice Verification:** Ensure that you have a proper VAT invoice from the supplier showing the VAT amount paid. The invoice should include the supplier’s VAT registration number, the VAT amount charged, and other relevant details.
### **3. **Recording VAT Credit in Books:**
- **Accounting Entries:** Record the VAT amount in your accounting books as follows:
**Dr. Capital Goods Account ₹2,35,158**
**Dr. VAT Input Credit ₹11,758**
**Cr. Bank/Cash ₹2,46,916**
This reflects the purchase of machinery and the VAT paid. The VAT input credit will be recorded in the VAT ledger for future set-off.
### **4. **Filing VAT Returns:**
- **Include in VAT Return:** When filing your VAT returns, include the VAT credit claimed on capital goods. In Haryana VAT returns, this is usually done under the section for input tax credits.
**a.** **Monthly/Quarterly Return:** Include the VAT credit amount (₹11,758) in the input tax credit column of your VAT return form.
**b.** **VAT Returns Form:** Ensure that you file the VAT return form (VAT Form-1, VAT Form-2, etc.) correctly, including the details of VAT paid on capital goods and the input credit to be claimed.
### **5. **Utilizing VAT Credit:**
- **Offset VAT Liability:** The VAT credit claimed can be used to offset your VAT liability on sales. This means you can reduce the VAT payable on your sales by the VAT credit amount.
### **6. **Documentation and Compliance:**
- **Maintain Records:** Keep all documentation related to the purchase and VAT credit claim, including invoices, payment receipts, and VAT return forms, as these may be required during audits or inspections.
- **Compliance:** Ensure compliance with all Haryana VAT regulations and any specific guidelines related to claiming VAT credit on capital goods.
### **Summary:**
1. **Claim VAT Credit:** You are eligible to claim VAT credit of ₹11,758 on the machinery purchase.
2. **Record Transactions:** Properly record the transaction and VAT credit in your books.
3. **File VAT Return:** Include the VAT credit in your VAT return for the applicable period.
4. **Maintain Documentation:** Keep all relevant documentation for verification and compliance.
**Note:** Always refer to the latest Haryana VAT Act and consult a tax professional for detailed guidance specific to your situation and to ensure compliance with the current regulations.
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