Input vat_karnataka

Input VAT Credit on Furnace Oil used for Production/ Manufacturing is availabale or not in karnataka ?

 

If available ? is it Fully or not??

 

Please help by answering

Replies (1)

Below is the extract of relevat section which will answer your query

Section 11. Input tax restrictions.- (a) Input tax shall not be

deducted in calculating the net tax payable, in respect of:

(6) tax paid on purchases attributable to naptha,

liquified petroleum gas, furnace oil, light diesel oil,

superior kerosene oil, kerosene and any other

petroleum product, when used as fuel in motor

vehicles, but when used as fuel in production of any

goods for sale in the course of export out of the

territory of India or taxable goods or captive power,

input tax shall be deducted as provided in Section

14.

14. Special rebating scheme.- Deduction of input tax shall be
allowed on purchase of goods, specified in clauses (5) and (6) of subsection
(a) of Section 11, to the extent of the input tax charged at a rate
higher than four per cent or any lower rate as may be notified by the
Government.

 

Regards

Dayananda

 

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