Dear Sirs,
I have given below the format that is available in Form I of TNVAT return regarding input vat credit on capital goods. In which I have fiiled up figures for the following transaction. Please let me know whether I am correct or not.
For example, a capital item is purchased for Rs. 4 lakhs after having paid a sum of Rs. 58000/- (14.5%) during the current month. The ratio of taxable and exempted turnover is 50:50.
| INPUT ITEMS | Purchase value during the month (Rs.) | Input Tax credit (VAT paid)(Rs.) | |||
| CAPITAL GOODS | Eligible Input Tax Credit (Rs.) | ||||
| (a)Upto previous month | NIL | NIL | |||
| (b)During the month | 4,00,000 | 29000 | |||
| Total | 4,00,000 | 29000 | |||
| Less: Reverse Credit* | 14500 | ||||
| TOTAL (NET) (D) | (D1) | 14500 | |||
In the above, I have taken 50% of 58,000/- i.e. Rs. 29000/- (being 50% is eligible during the first year) and I have taken Rs. 14,500/- as credit for the 50% of taxable turnover. Sirs, Is it possible to carry forward the remaining Rs. 14,500/- i.e. the balance available in the "Reverse Credit" row to the next month for adjustment.
Regards
CAclubindia
