Input credit on capital goods

Save Share

This query is : Resolved

Loyal Food International (Querist)
Follow

13 September 2011 Respected Sirs,

We estbalising a food industry, buying machineries with VAT payment, we file monthly sales tax return, what is the procedure to claim input tax and how?, we have not yet started our production and sales.

Waiting for your valuable advice in this connection.

Thanks and regards

Murugan, Partner

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

14 September 2011 Mr Murugan,
VAT paid on purchase of notified capital goods applicable to your industry can be claimed as input
immediately after commencing production of taxable goods.Please refer to the concerned notification or indicate which machinery you have bought.In the next correspondence I can tell you whether you can claim the input tax credit of capital goods purchases made by you.
MJK

Loyal Food International

Loyal Food International (Querist)
Follow

15 September 2011 Sir,
Many thanks for your reply, we buy food processing machineries, like, Boilor, kettle, pulper, heat excahnge machines, filling machines, etc, for building contruction, we by Roofing sheets with VAT.

Waiting for your valuable reply in this connection

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

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

15 September 2011 I agree with the experts

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

15 September 2011 Mr Murugan,
Food processing machines such as boiler,pulper,for preparation of meat,poultry,fruits,nuts and vegetables and furnaces are covered but not the filling machines and roofing sheets.They should be locally purchased by paying VAT,not interstate purchases.
MJK

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now