TREATMENT OF VAT ON FIXED ASSETS

This query is : Resolved

CA Abhishek Singh (Querist)
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09 May 2009 DEAR ALL

IF VAT IS CHARGED ON PURCHASE OF F.A. THEN I DONOT THINK IT WILL BE ALLOWED AS INPUT CREDIT FOR THE PURCHASER.

MY QUERY IS VAT WILL BE ADDED TO THE COST OF THE F.A. OR NOT ??????

Vivek Gupta

Vivek Gupta (Expert)
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09 May 2009 Input credit can be availed on FA in 2 annual instalments.

If one is not claiming the input credit then can add the same to arrive at the cost of FA.

raghunandan

raghunandan (Expert)
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09 May 2009 U have not mentioned the place of registration. IPT on purchase of asset is allowed in one go in Karnataka in the month of purchase. WRT adding of the IPT to the cost, if the same is not allowed like on the purchase of an asset not used in the manufacture of taxable goods, then the same shall be added to the cost of the asset.

Anoop Garg

Anoop Garg (Expert)
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09 May 2009 Any input (may be a capital asset)related to manufacturing/Commercial process is eligible for Vat input in the year of purchase with 100% vat ,The person taking vat has to keep fixed asset value at net9means depreciation benefit is not available on the amount of for which vat benefit is taken.

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CS Bijoy

CS Bijoy (Expert)
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29 August 2011 On capital asset input can be taken 50% in the purchasing year and 50% in the next year but in case of removal of the asset from the factory in the purchasing year than 100% input can be taken.

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