07 July 2010
A company under audit is into the business of renting a computer. 1.Can they claim vat input credit for payment made towards repairs of motor vehicle exclusively used for business purpose? 2.Can they claim vat input credit for payment made towards staff welfare expenses,office expenses which are incurred during the normal course of business? Regards Pratik
08 July 2010
I think in most of the states the expenditure will be allowed as the same is debited to profit and loss account.
Mainly fuel expenses is not allowed, but there is usually no restriction in car repairs used in bussines.
Also I assume you are Registered under vat law as you are asking this question and have same amount of tax collected: which you want to adjust against vat input credit.
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