Itc on capital goods purchased under w.b vat act

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Sir, Can I claim input tax credit on Capital goods purchased under w.b vat act? Pls clarify me the ITC treatment of Capital goods.
Replies (2)

Yes Dependra Kumar we can claim input Credit on Capital Goods but keep 3% as a retention money.

Eample VAT Paid on Capital goods 12.5%

Credit Available 12.5%-3% =9.5% Credit is available.

ITC on Capital Goods: – Tax paid on certain items of capital goods (defined) such as machinery, components, parts and spares etc. are also eligible for full set off. (On certain other items of capital assets such as furniture and fixtures, office equipments, etc. set off is admissible, subject to retention @ 3%, w.e.f. 8-9-2006) 

Dear Mr. Rahul
Whether your answer is with respect to West Bengal VAT Act? I am unable to find such provision in the Act..could u pls quote the section


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