Input credit - allowance (urgent)

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This query is : Resolved

K G Parthi (Querist)

17 May 2013 In many of the cases the Vat is not mentioned in the bill by the petrol bunk.

I just want to know the reason as why it is so?

Is Vat credit on petrol, diesel, etc. allowable?

Please reply.

Thanks in Advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

18 May 2013 Petrol and diesel are kept out of the VAT regime in most of the states in India.

In Kerala state, General Sales tax Act is retained on petrol and diesel.

Prakash Kochar

Prakash Kochar (Expert)

20 May 2013 In Maharashtra input credit is not available on motor spirit. Full set off is restricted on transactions covered u/r.54.
Sale of Motor Spirit at retail outlet is exempt from tax u/s. 41 (4)(2), no separate tax is charged in bill, therefore no vat input credit.

RENGARAJ R.K

RENGARAJ R.K (Expert)

05 June 2013 No Input tax is not eligible for diesel and petrol. Which state this query relates?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

06 July 2013 As the rate of VAT on Petroleum product is very high the same is not allowed to be adjusted as input credit. This means the petroleum products are kept out of the adjustment available for VAT. Therefore in all the bills of petroleum products you will not find VAT separately charged. You cannot do anything as this a Govt. Policy to collect more revenue for the State. Once thing more you should note that in every State the petroleum product price differs due to charging of VAT at different rate in different States.

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