Wb vat
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 April 2013
I belong to a company which is engaged in sale of cars i.e has dealership of cars and purchases cars from honda's manufacturing company and sell to customers .my company has its own showroom , workshop.
my question is when we sell cars we charge vat @ 14.5% from customer when we purchase fixed assets for use in company obviously vat is charged can input credit of vat be taken on vat paid on purchase of fixed assets.
please someone reply on basis of practical exposure and kindly explain me the logics, law , reasoning behind that and i have read somewhere that input credit of tax paid on capital goods can be taken then with what reference was it(is it for manufacturer)
please someone revert back as soon as possible and suggest me on this ground.
thanks in advance.please reply experts.
my question is when we sell cars we charge vat @ 14.5% from customer when we purchase fixed assets for use in company obviously vat is charged can input credit of vat be taken on vat paid on purchase of fixed assets.
please someone reply on basis of practical exposure and kindly explain me the logics, law , reasoning behind that and i have read somewhere that input credit of tax paid on capital goods can be taken then with what reference was it(is it for manufacturer)
please someone revert back as soon as possible and suggest me on this ground.
thanks in advance.please reply experts.
29 April 2013
Mr Author,
Even if you are a reseller of some goods,when some plant or machinery,other than second hand goods,are purchased to be used in the course of business,and it is capitalised in the books of accounts,you are eligible for taking credit of the VAT paid on such purchases(as input tax credit) as per Sec22,subsec 4(d) of WB VAT Act,2003.....mjk
Even if you are a reseller of some goods,when some plant or machinery,other than second hand goods,are purchased to be used in the course of business,and it is capitalised in the books of accounts,you are eligible for taking credit of the VAT paid on such purchases(as input tax credit) as per Sec22,subsec 4(d) of WB VAT Act,2003.....mjk
11 June 2013
The law of VAT is very much clear. It is applicable when you add some value to the cost of purchase then you have to pay VAT. Accordingly if you paid VAT on capital goods then it is also available for adjustment.
I agree with the expert.
I agree with the expert.
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