24 June 2011
The VAT paid on Capital Goods and not on goods for trading.
The set off. can be claimed for VAT paid on capital goods also but the thing is this in some States it is to be spread over 2 Yrs, in some it is 3 and 4.
Till you mention which State it is very difficult to tell you the position of VAT. But in nut sell it can be availed as set off.
CAclubindia
