INPUT TAX CREDIT ON CAPITAL GOODS
This query is : Resolved
VISWANADH.R
(Querist)
24 April 2009
What is treatment for input tax credit on capital goods for a manufacturing company.... Can it be adjusted against VAT liability.. Plz explain...
Chandresh Pitroda
(Expert)
24 April 2009
It can't be adjusted against VAT liability.
Input Tax credit is availbale to the extent 50% of credit in the year of purhcase or installation of capital item.
And balance 50% is to be availed forthcoming financial years.
Input Tax credit is availbale to the extent 50% of credit in the year of purhcase or installation of capital item.
And balance 50% is to be availed forthcoming financial years.
24 April 2009
Hi,
In the case of Excise Cenvat the above said 50 % is correct but in the case of ITC different states are following different menthods for capital goods ISD. Like instalments, 560 % and full credit also.
Please correct me if I am wrong.
In the case of Excise Cenvat the above said 50 % is correct but in the case of ITC different states are following different menthods for capital goods ISD. Like instalments, 560 % and full credit also.
Please correct me if I am wrong.
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