Input tax credit on fa

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This query is : Resolved

Veer (Querist)

19 February 2014 We are manufacturing concern orgainisation, we purchase the chiller / freezer for the purpose of storing the finished goods at the customers place and also we capitalized that in out books of accounts....

my question is, can we take the input tax credit for the same..

Vishnu Saboo

Vishnu Saboo (Expert)

19 February 2014 Normally, ITC is available on Capital goods on condition of that capital good has to be retain by you atleast 5 years. if the same is discarded before 5 year, proportion of same must be reversed.
better to refer ur state VAT Act for knowing definition of Capital good.

Veer

Veer (Querist)

19 February 2014 thanks for the reply....

request to go through the below facts...

company - Beer Manufacturing
State - Delhi

we manufactur and sell beer in Delhi, for the purpose of visibility and to serve the chilled beer we place the chiller at various retails shop in delhi. we also capitalised that in the books.

kindly suggest accordingly

Veer

Veer (Querist)

26 February 2014 Hi,

kindly let me know, can we revised the VAT return after taking F forms in Delhi.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

01 August 2024 Based on the details provided, here's an explanation regarding the eligibility of Input Tax Credit (ITC) for capital goods like chillers/freezers in the context of Delhi VAT and GST:

### **1. Eligibility for Input Tax Credit (ITC) on Chillers/Freezers**

**Under Delhi VAT (DVAT):**

1. **Capital Goods:**
- As per DVAT provisions, ITC can be claimed on capital goods that are used in the manufacturing process. In your case, the chillers/freezers are used to store and serve finished goods (beer), which is a part of the manufacturing and sales process.

2. **Eligibility for ITC:**
- You can claim ITC on the purchase of chillers/freezers if they are directly used for business purposes (like storing and serving beer). Since these are essential for maintaining product quality and are used in the business process, they qualify as capital goods.

**Under GST:**

1. **Eligibility:**
- Under GST, the ITC on capital goods like chillers/freezers is also allowed. GST rules permit input tax credit on capital goods if they are used in the course of furthering the business.

2. **Usage:**
- The chiller/freezer must be used for business purposes, and the GST paid on such capital goods can be claimed as ITC. This includes items used for storing or maintaining finished goods.

### **2. **Revising VAT Returns**

1. **F Forms and VAT Returns:**
- **Revising VAT Returns:** In Delhi VAT, if you have not claimed the correct ITC in your original return, you may be able to revise the return to include the correct ITC after obtaining F forms. This is typically allowed within a certain period as per the DVAT rules.
- **F Forms:** These forms are used for transactions involving the sale of goods to registered dealers in other states and may impact your ITC claims.

2. **Procedure:**
- To revise VAT returns, follow the procedure as prescribed by the Delhi VAT authorities. Ensure you have all necessary documentation and supporting details for the revisions.

### **Summary**

- **Yes, you can claim ITC on the purchase of chillers/freezers** used for storing and serving finished goods (beer) under both DVAT and GST if the items are used for business purposes.
- **You may revise your VAT return** to include the ITC if it was not claimed correctly in the initial return. Ensure you follow the proper procedure for revision and keep all documentation ready.

For accurate and updated guidance, consult with a tax professional or VAT/GST consultant, especially to ensure compliance with current regulations and to handle any specific complexities related to your case.

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