Dear Profeesionals,
In the case of Tamilnadu VAT Act, if a trading concern can avail input tax credit on Capital Goods?
Menu
Input tax credit on capital goods
Replies (1)
Dear Jayaprakash: No. Trading concern cannpt take input credit.
As per Section 2 (11) of VAT Act, capital goods is defined as follows:
“capital goods” means, –
(a) plant, machinery, equipment, apparatus, tools, appliances or electrical installation for
producing, making, extracting or processing of any goods or for extracting or for bringing about
any change in any substance for the manufacture of final products;
Thus only if a dealer uses the capital goods for manufacturing purpose he can take input credit. If he uses it for trading activity he cannot take the input credit.
Recent Topics :
- Discuss and Download CA Final Question Paper Nov 2
- Does Parag gupta's booster batch good for CA Inter
- Police Bandobost and GST Invoice
- Understanding where manual effort goes in audit wo
- Scanned purchase bills to Tally XML with GST check
- TDS applicability of foreign remittance to Oracle
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
Related Topics :
CAclubindia
