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Input tax credit under kvat

VAT (Legacy) 308 views 1 replies
Dear Team, One of my Client manufactures of Electro Chemicals, they are availing input credit on purchase of Microsoft Office, UPS System, Dell Laptop, LED Lights, Chairs, Safety Shoes, Electronic Weighing Scale, HP Cartridges etc, will they eligible for this input, pls clarify. Thanks in advance. Regards Prem Kumar S
Replies (1)

With reference to software, computer and its peripherals, electrical items and other items, input tax can be availed provided it is part of manufacturing/processing activity. To put it differently, if such assets are used for office purpose, then no ITC is available. No ITC on furnitures since it is specifically covered under the schedule: input tax restricted goods.


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