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Can i claim input vat on purchase of ?

AADI (STUDENT) (46 Points)

23 May 2008

dear sir's

i recently audited one company, company not claims input vat on purchase of computers.

my question is, can this company (manufacturing ) can claim input vat credit on purchase of computers and stationery items which was used for the purpose of office only.

i am pcc student, please suggest me.

thanking you

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13 Replies

Tarun (CA Practice ) (166 Points)
Replied 23 May 2008

VAT credit, with regard to assets purchased, can be claimed by the manufacturing company by not more than 50% in the first year and rest in the next year.

Rudesh Sharma (Service) (32 Points)
Replied 23 May 2008

As far i can understand VAT can be claimed only on the purchases which are for resale. As these computer would have be purchased for their own use they will not be able to claim VAT

Sandeep Rathi (Account) (79 Points)
Replied 23 May 2008

Purchase of Computer---if for Manufacturing e.g for R& D activity full credit is available.If used as capital asset 4 % of Purchase Price will be reduced & bal will be available as Credit Printing & Stationery--as it is debited to P L A/c full set of will be available

srinivasulu (Accountant) (63 Points)
Replied 24 May 2008

Between states some differences in vat rules as per AP Vat act u r using the goods in the business or resale only u can avail input, here u can't cleared what business they r doing? if they r in Manufacturing and they r using at company premises (not in the office) then u can avail. but no where it cleared on office equipments whether it was eligible or not?

Ashok Dwibedi (Service) (35 Points)
Replied 02 June 2008

Ok dear for all the Capital item / asset the benefit of input vat can be taken . But not 100% .It Should be Splitted to 3 Financial year. Ist Year 33.33%, Second Year 33.33% and Third Year 33.33%

Ashok Dwibedi (Service) (35 Points)
Replied 02 June 2008

Ok dear for all the Capital item / asset the benefit of input vat can be taken . But not 100% .It Should be Splitted to 3 Financial year. Ist Year 33.33%, Second Year 33.33% and Third Year 33.33%

Ashok Dwibedi (Service) (35 Points)
Replied 02 June 2008

Ok dear for all the Capital item / asset the benefit of input vat can be taken . But not 100% .It Should be Splitted to 3 Financial year. Ist Year 33.33%, Second Year 33.33% and Third Year 33.33%

(Guest)

Originally posted by :AADI
"	dear sir's i recently audited one company, company not claims input vat on purchase of computers. my question is, can this company (manufacturing ) can claim input vat credit on purchase of computers and stationery items which was used for the purpose of office only. i am pcc student, please suggest me. thanking you	"

(Guest)

Originally posted by :Tarun
"	VAT credit, with regard to assets purchased, can be claimed by the manufacturing company by not more than 50% in the first year and rest in the next year.	"

(Guest)

Originally posted by :Tarun
"	VAT credit, with regard to assets purchased, can be claimed by the manufacturing company by not more than 50% in the first year and rest in the next year.	"

Rohit Khare (student) (111 Points)
Replied 07 October 2008

Hi,

As far as my knowledge of VAT goes, computers if used directly in manufacturing will be eligible of 100% setoff being in the nature of plant & machinery. But if treated as OfficeEquipment, then VAT set off ia available after 3% reduction. That is to say if input vat is 4%, then only 1% vat can be claimed as set off.