Input Credit

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CA. Mala Rohara

CA. Mala Rohara (Querist)
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19 April 2009 Is VAT paid on Plant & Machinery eligible for claming Input Credit?

VINEESH KHANNA

VINEESH KHANNA (Expert)
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19 April 2009 Vat Provisions varies from state to state.

In Delhi, Vat paid on Capital goods is eligible for credit equally in three years.

However, it is eligible for credit in two years

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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19 April 2009 Yes.
You can unless the Plant is used in manufacture of tax-free goods in that case, ITC will be avialable after a reduction of 3% under MVAT Act.