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....!!!
CAclubindia
