Input tax credit

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Atinder Singh (Querist)
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26 June 2012 dear experts,
i would like to know your kind suggestions in the following situation....

A person is in business of generating power has purchased capital assets and booked VAT input on it. He does not have any VAT output.

Is he could claim the VAT input as refund?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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26 June 2012 If the person does not have any liabilty for output VAT then he can not claim the refund.

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Atinder Singh

Atinder Singh (Querist)
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26 June 2012 Thanks for giving your valuable opinion...

he is liable for form C, except that he does not have any VAT output liability. he has booked VAT input credit.

now again the same question is he claim the refund of VAT input...

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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26 June 2012 C form is issued only for Input CST and not for VAT.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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26 June 2012 if you have purchased any capital assets from interstate dealer then how can you claim refund of vat ? and also ITC on purchase of any product from other state can not claim as input.

in my view if you purchase any capital assets from other state with "C" Composition scheme then it will have to claim C Form while filing CST Purchase return in CST Return you can not even sett off with output

so better way is to claim C form and give it to suppliers to whom it was purchased

Atinder Singh

Atinder Singh (Querist)
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26 June 2012 thnks experts...