Tax Invoice - 2

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Hi

Repsected Members

Right now i am doing statutory audit of Public limited which is engaged in Manufacturing.

Now the case is i found that printing and stationary exp. made on TAX INVOICE basis

I feel that input vat paid on such stationary should be claim, but my C.A. told me that such item not used directly in production so credit can' be claimed.

Now i want to know whether My C.A. Committment is correct or not?

Please Reply

thanks
In advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 June 2010 Your C.A. is correct for Priniting and stationeery items we cannot take Input VAT

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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29 June 2010 ITC is allowed on goods purchased for resale or for use in manufacturing for resale

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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29 June 2010 Yeah agree with the above experts. If suppose we agree with your view then we as a final consumer pay VAT on so many products then we should be able to get the credit of it but it is not so. As righty said by Mr. O P Agarwalla that ITC is allowed on goods purchased for resale or for manufacturing.