Availing Input Credit...???

643 views 2 replies

satish r

student

91 Points Joined November 2009

We are cnc machining carrying on a orders from the parties, the parties supplies us the raw-material and also a specifications/instructions about the work. We carry on the process by using the raw-material supplied by them and convert them in to a finished output as per their specification's provided. Here while carrying on the process we will be using the consumable (like pins or a components say which is essential one while working in the machine for conversion process). And sales will be shown as only Labour charges which is also shown under KVAT-100 returns.

My Question is CAN WE CLAIM INPUT TAX CREDIT ON THE CONSUMABLES (SAY WHICH IS ESSENTIAL REQUIREMENT TO CARRY ON THE CONVERSION PROCESS ).....?????

Please Help....!!!

Replies (2)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

in your return sl no 1 to 8 if u are liable to pay tax then u can set off the input credit

conversion work is not a part of vat sales, so the consumables used does not qualify for vat credit

Dev K Sharma

Learning Thru Experience

157 Points Joined December 2010

Originally posted by : U S Sharma
	in your return sl no 1 to 8 if u are liable to pay tax then u can set off the input credit conversion work is not a part of vat sales, so the consumables used does not qualify for vat credit