Input tax credit

Others 474 views 5 replies

Hi,

I need help in regards to Input Tax Credit on an imported electronic item from China. Can we take Input Tax credit on this?

Regards,

Mani

Replies (5)

 No.You cannot claim Input Tax Credit (ITC) against any goods imported because at the time of purchase you would have paid custom on them and ITC is available only for VAT paid.

For detailed notes refer :

https://www.icai.org/resource_file/18948sm_finalnew_idtl_service_cp8.pdf

ITC CAN BE AVAILED ONLY THAN IF U PURCHASE LOCALLY AND PUT TO USE IN MFR. AND THE PRODUCT SHOULD BE SOLD LOCALLY OR EXPORTED OR TO SEZ WITHIN STATE AND UNDER TN VAT ACT INCASE OF INTERSTATE SALE WITH DECLARATION CAN BE CALIMED TO THE EXTENT OVER AND ABOVE 3%.  ITC CONCEPT IS TO SUPPORT & PROMOTE THE BUSINESS LOCALLY.  ST DEPT CANT AFFORD TO LOOSE THEIR REVENUE.

Thnak you both for your inputs. Can you also help me with what service tax will be applicable on my imported products?

Based on the information i read in the website below, there is no sales tax for imported items. Can this be correct or am i misunderstading it?

https://www.dutycalculator.com/country-guides/Import-duty-taxes-when-importing-into-India

I am importing an elctronic item from China that cost me $38 per unit and number of products will be in 1000's. What will be my Sales Tax % be?

No Sales Tax on Direct Imports/Exports ie.

As per the Act in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India,

Sales Tax applies only after entering in to Indian territory and subsequent sale either local or interstate as per the Commodity Tax rates applicable by the States.


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