23 May 2008
This being a software company in Gujarat purchasing computers which are capitalised and alos purchasing computer related parts whcih are debited to repairs & main. exps .
Query 1: Can we take input credit of vat charged on computers, which are capitalised under gujarat Vat Act?
Query 2 : Can we take input credit of vat charged on spares and parts of computers which are debited to repairs & main. exps, under Gujarat Vat Act?
02 June 2009
each have it's own opinion in this regard. as per sec 11 (5)(k), you are not eligible for vat credit, if material is not related to your bussiness. but since in your case u cann't even perform work without said material.
CAclubindia
