Input tax credit on capital goods

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B.M.RAVI RAM PRASAD

B.M.RAVI RAM PRASAD (Querist)
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15 April 2012
Can we take input tax credit on capital goods purchase?

CA CS Pawan Jajoo

CA CS Pawan Jajoo (Expert)
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16 April 2012 yes we can take set off of Vat paid on capital goods , subject to retention u/r 53, and no setoff u/r 54 .

that is u/r 53 , some capital assets like office equipment , computer , furniture etc. are liable for retention at 3 %.

u/r 54 no setoff is available on Passenger Car , Building Material etc.

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