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CENVAT CREDIT OF VAT

3059 views 4 replies

CA Navin Jain

MANAGER (FINANCE & ACCOUNTS)

11768 Points Posted on 13 December 2008

HELO

ABC lTD. purchaed a Mobile phone and debited to P&L A/C (As Business Purmotion exp.) in the month of Aug. 2008 Without taking cenvat credit of VAT.

Now the company is filed VAT return for the month of Nov. 2008. There is possible to taken cenvat credit of VAT on mobile phone.

Regards

Navin Jain

Replies (4)

CA CS Akashdeep Singh

Practicing CA

1394 Points Posted on 13 December 2008

There is no concept of CENVAT credit in vat, i think you are asking about VAT INPUT credit

CA Tilak Raj Sharma

Practising CA in Solan (H.P.)

6374 Points Posted on 13 December 2008

CENVAT credit is used in exise and custom duty. There is no such concept in VAT for CENVAT.

In VAT, you can take Input Credit of VAT.

L KANAGARAJ

Assistant Manager-Finance

615 Points Posted on 13 December 2008

Originally posted by :Navin Jain
"	HELO ABC lTD. purchaed a Mobile phone and debited to P&L A/C (As Business Purmotion exp.) in the month of Aug. 2008 Without taking cenvat credit of VAT. Now the company is filed VAT return for the month of Nov. 2008. There is possible to taken cenvat credit of VAT on mobile phone. Regards Navin Jain	"

I hope Input VAT credit only for those items used for manufacturing purpose. Mobile Phone purchase not covered under input VAT claim.

Ignore it, if iam wrong.

Manikantan.L

Accountant

20 Points Posted on 15 December 2008

This is VAT Input.

This credit can be taken in the next month also.since it is a mobile phone it can be treated as asset so 50% credit can be availed this year balance in the next year.

Now you have treated as expenditure. so this is up to you to decide whether as Asset or exp. If it is exp. it can not taken as input credit.

With regards

MKTAN