Input credit on goods purchased

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Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2012 Goods purchased by dealer are used in erection of immobile property other than plant & machinery, ut the property in goods purchased is not transferred as goods or in other form, whether dealer will be entitle for input credit on purchases of such goods under MVAT Act?
Example- spare parts, lubricants and consumables purchased for road roller, trucks, machines used in the road work.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

31 August 2012 Mr Author,
VAT paid on purchase of consumables can be as ITC,but in some states,such purchases should not be included as expenses on labour and services while computing taxable turnover.....MJK

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2012 As per MVAT Act applicable in Maharashtra as per rule 54(h) the goods used for erection of immovable property other than plant & machinery, without transfer of property as goods or in other form is not eligible for input credit.
Is it correct?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

02 September 2012 Mr Author,
You are correct, as per this rule, VAT paid on purchase of consumables,like lubricants for erection machinery, is not eligible for input tax credit.This rule is slightly diffrent in Karnataka and other states......MJK

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2012 Mr. MJ Krishnamurthy Sir,
There seems to be typing mistake.
On erection of plant and machinery input credit is available on consumables, but not on immovable properties where there is no transfer of property as goods or in other form.

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