input credit on capital goods

This query is : Resolved

selva (Querist)
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06 November 2009 i have purchased capital assets at the rate of 12.5% vat.

can i get input credit on 12.5% @ 50% for the 1st year and balance 50% in the next year.

i have got notice from commercial dept as i am eligible for only 4% eventhough i have paid the vat 12.5%.

is it correct

what is the remedy for the above matter.

Vishnu Saboo

Vishnu Saboo (Expert)
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06 November 2009 Vat credit can be taken whatever rate is applied on material.
but 50% concept is applicable in excise duty cases, in case of VAT it can be claim either in 5 year or in 1 year but that capital item should not sold before 5 year.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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06 November 2009 In which state you are dealing ,

RAJESH MODI

RAJESH MODI (Expert)
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09 November 2009 YOU HAVE RECIVED 8.5 % OF INPUT TAX REBATE

Vishnu Saboo

Vishnu Saboo (Expert)
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11 November 2009 Vat credit can be taken whatever rate is applied on material.
but 50% concept is applicable in excise duty cases, in case of VAT it can be claim either in 5 year or in 1 year but that capital item should not sold before 5 year.