Input tax credit on capital goods

whether input tax credit on capital goods can be availed by a trading concern?

Please give me an answer.

Replies (3)

Dear Nejosh Manjila

The VAT Input Credit can be availed on Capital Goods by a trading concern in Maharashtra

It differs from state to state. So i can be specific if you mention the state.

can we claim input tax credit on capital goods in 1st year it self under gujarat VAT?

 

As per the provisions of the Gujarat VAT Act, 2003, Input Credit on Capital Goods can be taken as soon as the Godos are capitalized in the books of Accounts and are used in the manufacture of taxable goods.

Input Credit is ineligible on Capital goods used in the execution of a Works Contract and generation of power.

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