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...
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.
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.
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