Set off

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SANJAY S.SHARMA

SANJAY S.SHARMA (Querist)
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10 July 2012 WE ARE A PHARMACEUTICAL COMPANY in Maharashtra WHETHER SET OFF is ELIGIBLE FOR PURCHASE OF MOBILE handset

CA Hardik Bunha

CA Hardik Bunha (Expert)
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10 July 2012 it is depend on your state in some state vat on capital asset is set-off against vat payable.

SANJAY S.SHARMA

SANJAY S.SHARMA (Querist)
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10 July 2012 WE ARE A PHARMACEUTICAL COMPANY in Maharashtra WHETHER SET OFF is ELIGIBLE FOR PURCHASE OF MOBILE handset

shakti soni

shakti soni (Expert)
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11 July 2012 THIS INFO IS AS PER MAHARASHTRA VAT ACT 2005.....I DON'T KNOW IF THERE ARE ANY CHANGES AFTER THAT. (BUT PRACTICALLY SPEAKING AND AS PER APVAT ACT INPUT ON OFFICE EQUIPMENT,PRINTING,STATIONERY AND MOBILE PHONES ARE NOT ELIGIBLE).

Input Tax Credit (ITC) (Set off):– [Sec. 48, Rules 51 to 56]

Eligibility: – All registered dealers, whether manufacturer or traders, are eligible to take full set off of the taxes paid on inputs; i.e., Value Added Tax paid, within the State of Maharashtra, on purchases of Raw Material, Finished Goods and Packing Material, or any goods debited to profit and loss account.

Entry Tax: – The amount of entry tax, paid by a registered dealer on the goods the sale of which is liable for VAT under MVAT, will be eligible for full set off.

ITC on Capital Goods: – Tax paid on certain items of capital goods (defined) such as machinery, components, parts and spares etc. are also eligible for full set off. (On certain other items of capital assets such as furniture and fixtures, office equipments, etc. set off is admissible, subject to retention @ 3%, w.e.f. 8-9-2006)

ITC on Miscellaneous Goods: – The amount of Vat paid on purchase of miscellaneous goods, debited to Profit & Loss A/c. (such as printing and stationery, repairs, sales promotion etc.) also eligible for full set off.

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