ITC under Karnataka VAT
This query is : Resolved
30 January 2023
Dear Sir,
We are a sheet metal manufacturing unit in Bangalore. Purchased a Laser Cutting machine in April, 2017. We do sales of sheet metal products and also provide services of laser cutting or bending only, i.e. job-work. We are under Service Tax. Labour charges under KVAT are zero-rated sales but we include Service Tax in the Invoice to our clients. Will I be able to avail full ITC of the machinery purchase ? Thanks, Ramesh
We are a sheet metal manufacturing unit in Bangalore. Purchased a Laser Cutting machine in April, 2017. We do sales of sheet metal products and also provide services of laser cutting or bending only, i.e. job-work. We are under Service Tax. Labour charges under KVAT are zero-rated sales but we include Service Tax in the Invoice to our clients. Will I be able to avail full ITC of the machinery purchase ? Thanks, Ramesh
31 January 2023
No. ITC of VAT of machine is not eligible, because of zero rated supply.
31 January 2023
Thank you for your reply Sir... we are also doing manufacturing sales, hence i presumed we should be able to avail ITC ... thanks for the info
31 January 2023
Whether the machine is used form manufacturing any product having outward VAT liability?
31 January 2023
Almost all the time the machine was and is used for manufacturing with VAT goods only
31 January 2023
Depending upon the usage on manufacturing sheets for sale, you can take ITC credit in proportion.
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