Inpur vat credit

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This query is : Resolved

Gkannan (Querist)

19 April 2012
Ours is a service oriented concern having service charges as 99% income in the P&L. when we are selling fixed assets, can we adjust the vat paid on the sales of fixed assets against the inputvat on bills receive by us against some other purchases made by us during the course of business

can any body clarify
Reg,
G.kannan

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)

19 April 2012 As per my opinion , unless and untill you are registered under VAT , you can not adjust the Input VAT on Fixed Asset.

Further opinion are invited

Gkannan

Gkannan (Querist)

20 April 2012 Thanks Mr. Pawan, we are registered under VAT, My querry is we are a service oriented unit whether we can adjust the input vat on other purchases against the output tax paid by us on sale of fixed assets.

Reg,
G.Kannan

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)

20 April 2012 YEs in that case you can take set off , subject to retention on Office equipment, furniture.

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