Aditya Kumar Narayan (CA Finalist) (84 Points)
15 March 2013purchase 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??
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 15 March 2013
No, only the registered dealer can avail benefit of claiming input tax credit.
ankur bansal (CA Final)
(student)
(124 Points)
Replied 16 March 2013
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 16 March 2013
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
Hi,
IF u have V.S.Datey sir's book refer page.no 21.
or for ur ref
Credit will be available of tax paid on CG purchased within the state.credit will be available only in respect of goods used in manufacturing and production.the credit will spread over 3 years and not in first year itself.there will be a negative list of CGs.
The credit of CG is available only for manufacturer or proceesor.
A trader can avail Input tax credit on CG only when he is trading of those CGs.
Rgds
RAHU RAMI REDDY DONTHIREDDY
(ARTICLE ASSISTANT)
(21 Points)
Replied 17 March 2013
No, only registered dealer will take ITC.
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 17 March 2013
The issue of capital goods arises only with a mnufacturer and not with a trader......mjk
plz refer para 2.4 of White Paper on State-Level VAT for further reference.
Para 2.4 If the tax credit exceeds the tax payable on sales in a
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