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input tax credit

anant jain (accountant) (30 Points)

05 June 2017

please any one tell that we are the manufacturer of non taxable goods and our raw material is taxable. what is the tax procedure for us. can we claim tax benefit on taxable raw matrial or not.

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3 Replies

Shubham Gupta (Business Consultants) (2077 Points)
Replied 05 June 2017

hello sir,

input on raw material can be claimed only when, our output is taxable to tax,

Even input claim can be taken if, output is charged at 0%, but cannot be claimed if it is Tax Free

CA Shubham Gupta

9968983550

anant jain (accountant) (30 Points)
Replied 05 June 2017

sir thank you for your opinion.
but 0% is also tax free.
one more thing that if we cannot claim input then it will increase our cost.

Shubham Gupta (Business Consultants) (2077 Points)
Replied 05 June 2017

sir,
most of us mix 0% tax and exempt , these both are seperate as per law,

and yes you rightly said that your costing will increase.

i am attaching DVAT list, if your item is under exempt list, then no credit will be available

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