vat clarrification

This query is : Resolved

Madhanagopal (Querist)
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23 July 2010 DEAR SIR\MADHAM,
ONE COMPANY WAS BOUGHT A MACHINER RS.200000,VAT AMOUNT IS RS.8000(TOTALLY MACHINERY VALUE RS.208000),THAT COMPANY CLAIM THE VAT OR NOT,IT IS UNDER CAPITAL GOODS OR NOT

K Bala Kishan

K Bala Kishan (Expert)
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23 July 2010 Hi Madhanagopal,

If your company is making direct sales / stock transfers / exports and taxable purchases then you can claim vat input tax crediot from the department. On capital goods it is depended on state specific. In Tamilnadu, capital goods VAT ITC is taken in 36 instalments and in Andhra there is no specific input as capital or raw materials., etc. So u can claim vat itc on capital goods.

Regards,
balu

Madhanagopal

Madhanagopal (Querist)
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23 July 2010 this is not sales or stock transfer,purchase machinery input vat claim or not

K Bala Kishan

K Bala Kishan (Expert)
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23 July 2010 Dear Madhana gopal,

I want to clarify you on one thing.

As per your query, On Capital goods you can avail/claim VAT Input tax credit from the Department.

But you can claim VAT Input tax credit as refund from the department until and unless you show direct sales from that dealer. If you do not have any sales and only purchases, you cannot claim VAT ITC.

This is what i want to clarify you. If anything still to be clarified. Please feel free.

Balu

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