Input tax

Hi All,

Please help me in dis......

 

I am working for Service Entity.... we have purchased Furniture for office purpose, in this tax Invoice  they have Charged VAT of      Rs-23000/-

Can i cliam Input tax under Service Tax Becuase We Dont File Sales Tax ? what happens if we have Sales Tax also

And Please Correct me if i wrong i have passed entry in  our books

Furniture a/c dr      xxx

Input Tax ac dr       xxx

to Sundry Creditor              xxx

 

sundry creditor a/c dr    xxx

to bank                                       xxx    

 

 

 

 

 

 

 

Replies (8)

Sir, 

Firstly, Office furniture not eligible for input credit of vat. VAT & secondly,  Service Tax should  not be adjusted 

as a basic principle of indirect tax, If you are the ultimate consumer, you have to bear the tax burden. do not take the credit of vat paid. just add it to your cost and modify the entry as necessary

Thank u Goutam

 

But Some where i Heard Input tax Can Take for Capital Goods as per sales tax ?

You may hear and see many things in life.

Here you cannot claim input tax credit for VAT as you have no VAT registration as you do not have any output VAT liability.

Regards,

Thank You Dipjyothi for valuable Information.

If we Have Registration of VAT & there is output liability then can  we claim input tax for all  capital goods what ever purchase after VAT registration ?

Never adjust VAT with other taxes or vice versa with an exception between CST payable and VAT Credit

Originally posted by : shibu

Never adjust VAT with other taxes or vice versa with an exception between CST payable and VAT Credit. VAT Credit on Capital goods admissible but in instalments. Refer appropriate State Laws

sir,

Since you are purchasing furniture for office purpose you cannot adjust vat.Vat can be adjusted only if you are dealing purchases and sales of furniture with proper registration certificate.Here you are the consumer , so you have to bear the tax and it cannot be adjusted against another taxes..

 

Thank U All.

 

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