Input credit on lubricants - Karnataka VAT
This query is : Resolved
15 November 2010
My client is into manufacture of aluminum utensils. He purchases aluminum scrap and also Furnace Oil and CSNL Oil for the purpose of manufacture.
The CSNL Oil is manufactured using cashew kernals and carries a tax of 5% while the furnace oil carries a tax of 13.5%
My question is can my client claim the credit on the furnace oil and CSNL Oil used while filing the monthly returns.
My reading of the Section 11, section 14 and Notification No.FD 507 CSL 2007, says that my client can full credit of CSNL Oil as it does not fall under the definition of lubricants and in case of furnace oil, it would be restricted to excess of local vat over cst rate.
Would like to know the opinion of the experts as I am required to file VAT 240 and am thinking of claiming input credit now for the entire year. Can I do so?
The CSNL Oil is manufactured using cashew kernals and carries a tax of 5% while the furnace oil carries a tax of 13.5%
My question is can my client claim the credit on the furnace oil and CSNL Oil used while filing the monthly returns.
My reading of the Section 11, section 14 and Notification No.FD 507 CSL 2007, says that my client can full credit of CSNL Oil as it does not fall under the definition of lubricants and in case of furnace oil, it would be restricted to excess of local vat over cst rate.
Would like to know the opinion of the experts as I am required to file VAT 240 and am thinking of claiming input credit now for the entire year. Can I do so?
B R Ramesh
(Expert)
15 November 2010
Hi
according VAT act 2003 says that the commodity which is purchased to use directly or indirectly in the course trading or manufacturing the products.
for sale.
hence you can avail the credit.
according VAT act 2003 says that the commodity which is purchased to use directly or indirectly in the course trading or manufacturing the products.
for sale.
hence you can avail the credit.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
