Vat setoff on fixed assets

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This query is : Resolved

Alex Fernandes (Querist)

21 January 2012 If a Company is in business of washing clothes every week and with contract they also provide lockers on rent so can company claim set off on lockers purchased and also set off on laptop can be claimed????please give reference in MVAT Act or Rule

CA Rushikesh Kolhe

CA Rushikesh Kolhe (Expert)

22 January 2012 Yes the company can claim set off against vat on fixed assets. The company can even claim set off against any expenses made like if stationary purchased, the vat on such purchase can also be claimed even if the business of company is not dealing in papers.

CA Sumit agarwal MBA CFA

CA Sumit agarwal MBA CFA (Expert)

23 January 2012 As per the VAT Act of almost all the states in India , Plant and machinery used for manufacture or business or in case of trading busness , furniture and fixture purchased is allowed.
You have to check whether MVAT Act and its Rule gives the shedule specifying the Items eligible for ITC or not. Further such ITC in some states are allowed in installments . You have to check the same.

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