Vat on purchase of fixed assets.

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This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2015 Dear Sir,
I purchase some fixed assets for set up my new business. The seller refused to give me the tax invoice because of I am the customer not trader for him. Can I take Input Tax Credit on those purchase. Please suggest me what is the correct process to follow on this case.

Thank You.

Amol S Joglekar

Amol S Joglekar (Expert)

16 December 2015 01. You can NOT claim input credit/set off on the VAT paid on fixed assets.
02. It is always advisable to take VAT invoice.

CA Komal Puri

CA Komal Puri (Expert)

16 December 2015 You can take VAT credit on purchase of Fixed Assets only if the seller issues you a Tax invoice.
If it is for the purchase of Plant & Machinery/Dies and Molds/ Tempos or the Fixed Assets which are directly used for use in factory only then can you claim 100% set-off. If the Fixed Assets consist of Furniture, Computers etc which are not used in the factory you can claim set-off after 3% retention. But if your dealer has not issued TAX invoice you cannot claim credit.

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