purchase of capital goods=Rs 100000,vat paid(not included in purchase price)=Rs 10000
1.sale price of said capital good=RS 150000
2.Sale price of the capital good=RS 70000
if the assessee uses the capital good merely for production,i.e he is not a dealer of the capital goods,will he be allowed input credit??
No, only the registered dealer can avail benefit of claiming input tax credit.
Allowing ITC on purchase of capital goods is restricted to some selected machinaries and plants in most of the states. This is given in in a notification. Find out what is the rule in your state.......mjk
No, only registered dealer will take ITC.
no you are not take ITC
The issue of capital goods arises only with a mnufacturer and not with a trader......mjk
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