Capital goods under Tamilnadu VAT

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L KANAGARAJ

Assistant Manager-Finance

210 Points Posted on 30 July 2008

Sir/ Madam,

e.g.

1.One Limited company bought one Machinery for Rs. 1040/- (1000+VAT @ 4%=40) in 15th Jan.2007

Here, the Input Tax of Rs. 40.

Whether we can claim Input of Rs.40/ in 1st FY. (06-07) (OR) can we claim Rs.20 i.e 50% in 1st FY. (06-07)

(or) one year completion of the date of purchase i.e (07-08 , Jan'08. monthly Return )

2. For the above machinery we purchased some ancilleries @ 12.5% VAT. In this case whether we can avail the VAT as INPUT VAT or this amount added with the machinery cost. Bcoz, In our Sales Tax circle, they told that for C.Goods only 4% VAT should be applicable.

3. What rate is correct to Capital goods whether 4% or 12.5%. which one we avail as ITC for C.Goods.

please clarrify.

Replies (3)

vijaykumar

student

80 Points Posted on 07 August 2008

Originally posted by :L KANAGARAJ
"	Sir/ Madam, e.g. 1.One Limited company bought one Machinery for Rs. 1040/- (1000+VAT @ 4%=40) in 15th Jan.2007 Here, the Input Tax of Rs. 40. Whether we can claim Input of Rs.40/ in 1st FY. (06-07) (OR) can we claim Rs.20 i.e 50% in 1st FY. (06-07) (or) one year completion of the date of purchase i.e (07-08 , Jan'08. monthly Return ) 2. For the above machinery we purchased some ancilleries @ 12.5% VAT. In this case whether we can avail the VAT as INPUT VAT or this amount added with the machinery cost. Bcoz, In our Sales Tax circle, they told that for C.Goods only 4% VAT should be applicable. 3. What rate is correct to Capital goods whether 4% or 12.5%. which one we avail as ITC for C.Goods. please clarrify.	"

subramanya

Professional

667 Points Posted on 07 August 2008

Originally posted by :L KANAGARAJ
"	Sir/ Madam, e.g. 1.One Limited company bought one Machinery for Rs. 1040/- (1000+VAT @ 4%=40) in 15th Jan.2007 Here, the Input Tax of Rs. 40. Whether we can claim Input of Rs.40/ in 1st FY. (06-07) (OR) can we claim Rs.20 i.e 50% in 1st FY. (06-07) (or) one year completion of the date of purchase i.e (07-08 , Jan'08. monthly Return ) 2. For the above machinery we purchased some ancilleries @ 12.5% VAT. In this case whether we can avail the VAT as INPUT VAT or this amount added with the machinery cost. Bcoz, In our Sales Tax circle, they told that for C.Goods only 4% VAT should be applicable. 3. What rate is correct to Capital goods whether 4% or 12.5%. which one we avail as ITC for C.Goods. please clarrify.	"

Hi Kanagaraj,

You may refer this Pdf Booklet published by TN Govt. with regard to Input tax credit on Capital Goods

Subramanya

KRISHNA S YENDIGERI

MANAGER MATERIALS

22 Points Posted on 08 January 2010

Dear Sir,

We are placing order from bangalore to tamilnadu vendor and the material has to be delivered in tamil nadu only. can vendor bill on us as buyer and tamilnadu customer as consignee on 4%vat or is there any alternate