Reduction in set off

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This query is : Resolved

CA Macson Lopes (Querist)

01 November 2013 whether there is any reduction in set off against VAT paid on
1."Repairs to furniture and fixture or Computer"

2. Purchase of Air Conditioner (Capital goods)

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

01 November 2013 As they are not machineries used for production of taxable goods,input paid on their repairs and purchase can not be claimed as set-off.....mjk

CA Pallav Singhania

CA Pallav Singhania (Expert)

01 November 2013 Agree with Expert,

If such machinery used in production of taxable goods then you can claim set off of VAT credit in 36 months...

Jitesh S Jain

Jitesh S Jain (Expert)

02 November 2013 In Maharashtra full input credit of VAT on Repairs of Furniture is allowable. if you have not capitalised the Repairs.

3% retention is required to be applied on A C Purchase (i.e if VAT@5% of Rs. 10000/- is levied ) then Rs 6000( 3/5) is not available balance 4000 can be claimed as set off. (see Rule 53 (7A) of the MVAT Rules

CA Macson Lopes

CA Macson Lopes (Querist)

20 November 2013 Thanks all.....

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