Input Vat on Capital Goods

672 views 1 replies

Q.  Business formed on 1.1.2010 and got Vat registration on 1.4.2010 but sale took place from 1.4.2010..Can the dealer claim the input vat on capital goods purchased on 1.1.2010 but used from 1.4.2010 ?


Q.  Business formed on 1.1.2010 and got Vat registration on 1.4.2010 but sale took place from 1.4.2010..Can the dealer claim the input vat on capital goods purchased on 1.1.2010 and used from 1.4.2010 ?

Replies (1)

 

Ans. FOR THE ABOVE QUESTION RAISED THE ANSWER IS NO, ANY DEALER CAN AVAIL THE BENEFITS OF CLAIMING INPUT TAX CREDIT ONLY WHEN THEY GOT REGISTERED UNDER THE SAID CTO DEPARTMENT AND THERE ARE TWO WAYS FOR GETTING REGISTERED UNDER VAT.

01. VOLUNTARY REGISTRATION.:

      Any dealer effecting sales of goods liable to tax under this Act ,who is not otherwise liable to register and who registers himself as a VAT Dealer.

      Dealer opting for voluntary registration shall make taxable sales and the said dealer shall have a prominent place of business.

in this case if dealer fails to file the tax returns and his taxable turnovers doesnot exceed the prescribed slab by the said CTO Department the authority shall cancel the registration after giving the VAT dealer the opportunity of being heard.

 

02. START UP BUSINESS:

Any dealer intending to setup a business in taxable goods and effect sale of goods with in next three months who is not otherwise liable to register may also register as as VAT dealer .The dealer registered as a start up business may claim input tax credit in respect to tax paid on inputs relating to the prospective taxable business activities .

EXAMPLE:        For example a rice miller intending to construct a rice mill and do business may purchase capital goods or paddy ,the tax paid thereon can be claimed credit even though no sales are made .when once he makes a taxable sale he shall become registered , if no taxable sale is made with in period of 24 months from the date of registration ,his registration will be cancelled .



CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details