Vat and service tax paid on fixed asset

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CA CS PRASHANT (Querist)

14 January 2012 Dear Experts pls give your view on the following issue:

We are doing trading of mobile sets,logistics,Warehousing and supply chain management business.

We are doing business on all over India.

For smooth going of above activities we are purchasing fixed assets i.e ladders,gensets,handlers,Laptops and desktops for office work.

We are paying VAT and some cases service tax also on the above fixed assets.

My question is whether we can use input VAT for paying of our output VAT and can we use the input service tax against out output service tax.

Nishant

Nishant (Expert)

15 January 2012 We consider that the case is of Maharashtra and the VAT paid is MVAT.

a. You can utilise the MVAT credit of the assets subject to reductions u/s 52, 53 and 54

b. The service tax credit on assets cannot be utilised to the extent it is utilised for trading

c. The service tax credit on assets used for common services will be subject to reduction under rule 6 (3)

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CA CS PRASHANT

CA CS PRASHANT (Querist)

15 January 2012 Do you have any knowledge about kolkata VAT act regarding the issue.

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