Can i claim input vat on purchase of ?

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

Replies (13)

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. 

Hi

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

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

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?  

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%

 

 

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%

 

 

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%

 

 

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
"


 

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.  "


 

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.  "


 

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.

 

hii

   The nature of claming Input credit depend on purchase; weather the purchase was made as capital or revenue item.

Dear Sir,

Does a Manufacturing and 100% EOU unit eligible for VAT credit on all kind of capital goods eg computers, furniture etc???? PLz suggest..... 

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