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Input tax

Ranjini (Accountant) (98 Points)

19 December 2012

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

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8 Replies

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 19 December 2012

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

1 Like

Ranjini (Accountant) (98 Points)
Replied 19 December 2012

Thank u Goutam

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

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 19 December 2012

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,

Ranjini (Accountant) (98 Points)
Replied 19 December 2012

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 ?

shibu (Accountant) (325 Points)
Replied 19 December 2012

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

shibu (Accountant) (325 Points)
Replied 19 December 2012

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

PRATHIMA REDDY (CA ) (115 Points)
Replied 20 December 2012

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..