Input Credit of VAT
This query is : Resolved
Gourav Goyal
(Querist)
26 November 2008
hello sir/mam,
i m purchasing some material inclusive of vat and thereon an amount of subsidy is also given by the suplier.
i want to know that whather should i take the whole input VAT credit or propotionate VAT on material cost after subtracting the subsidy theron?
e.g.
material cost 1200
VAT theron 48 (@ 4%)
total price 1248
let subsidy 624
net amount payble to suplier 624
now i have two opinion.
1:-
Input VAT credit will be 24 {i.e.(1248-624)*0.04/1.04}
and the second one:-
Input VAT credit will be 48 {i.e.(1248*0.04/1.04} means the whole Input VAT.
what should i do???
i m purchasing some material inclusive of vat and thereon an amount of subsidy is also given by the suplier.
i want to know that whather should i take the whole input VAT credit or propotionate VAT on material cost after subtracting the subsidy theron?
e.g.
material cost 1200
VAT theron 48 (@ 4%)
total price 1248
let subsidy 624
net amount payble to suplier 624
now i have two opinion.
1:-
Input VAT credit will be 24 {i.e.(1248-624)*0.04/1.04}
and the second one:-
Input VAT credit will be 48 {i.e.(1248*0.04/1.04} means the whole Input VAT.
what should i do???
CA Tilak Raj Sharma
(Expert)
26 November 2008
You can take full Input VAT.
26 November 2008
If the supplier is paying full vat to govt., i.e. not making any adjustment for subsidy amount, you can surely take credit of full vat amount.
Gourav Goyal
(Querist)
28 November 2008
thanks for ur rplys sir,
plz verify any case law or any section is there in this regard??
plz verify any case law or any section is there in this regard??
Dhirajlal Rambhia
(Expert)
22 June 2023
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