Query related to vat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2011 Dear Sir/madam

I want to know whether vat can be claim on fixed assets on which 100% depreciation is claimed in the first year as they are below Rs 5000

B R Ramesh

B R Ramesh (Expert)
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05 February 2011 Hi

VAT can be claimed on capital goods not on fixed assets.

capital goods means the asset which is used to trade or manufacturing the product.

fixed assets means computer, furniture,motor car etc . which you can t claim the input . becuase it is not related to use to produce the product for sale.

ex; machinery, spareparts can avail 100% input credit.

therefore please identify the assets & claim the input.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011

Dear Sir,

now my qustion is if assets is capital goods on which we availed 100% input credit can we further provide depreciation on that

Or if not than what will be appropriate to claim depreciation or to avail input credit ?

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