Input vat on capital goods

Yes, input tax credit can be availed. Provisions in the KVAT Act, 2003 provides for availing of credit only after the commencement of commercial production.

The availment of part of the credit in the month of procurement and balance in the subsequent year as in Excise is not being provided in KVAT Act, hence the same shall not be applicable.

The definition of input tax includes vat paid on all purchases. The provisions and definition gives an impression that legislature did not intend to differentite between revenue and capital purchases. Hence, purchase of capital goods can also be declared under the purchases. Care needs to be taken to ensure that credit is availed only in the month of commencment of commercial production.

Thank you sir.. very helpful

Dear experts

is same procesdure as above  applicable in Delhi & UP

PL suggest

Regards

Brajesh

Dear Sir,

Can u plz let me know what about the input VAT on Capital Goods purchased for civil projects.