One of my friend doing a business of construction of building. he buying the materials like sand, steel, cement etc., for tht that he is paying VAT also. he is not selling the same to other. he is using the same to construct the building. whether input credit can claim in this areas.
22 February 2008
Under the MVAT rules this credit is not eligible.
It has been clarified that additions to land and building and all expenses related to such additions will not be elligible even if debited to P & L account
CAclubindia
