MY CLIENT HAS A FACTORY AT KIRTI NAGAR, DELHI, OF IRON STEEL RODS.. HE HAS RECENTLY CONTRACTED WITH IGL FOR A GAS SUPPLY IN HIS FACTORY ON MONTHLY BASIS.
HE IS PAYING RS. 13000 VAT PER MONTH TO IGL.
I WANT TO KNOW WHETHER HE IS ELIGIBLE TO CLAIM THE CREDIT OF THAT VAT PAID OF RS. 13000 ON THE TOTAL AMOUNT OF VAT PAYABLE ON THE SALE OF IRON AND STEEL RODS ?????????
Mr Mana CA,
As per sec 9,sub sec7(c), it means that tax paid on consumables used in a job work is not allowed as input tax credit. Here as you are producing some taxable goods sold in Delhi then the tax paid on their purchase is allowed as ITC.
MJK
Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
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