Itc on machinery spares

VAT (Legacy) 768 views 3 replies

Sirs

Kindly advice regarding input tax credit eligibility on machinery spares used in the daily course of production in Spinning Mill units as few says it is eligible and few suggestes its can't.  Pls suggest, am totaly confused.

Regards

Gireesh

Replies (3)

Spares for machinery are regarded as capital goods and input tax credit can be availed on the same. VAT credit on capital goods may be adjusted over a max of 36 months (but it varies from state to state).

Many Thanx Mam.


Regards

Gireesh

Machinery spares to be treated as Consumable items and ITC can be claimed , under commodity code 2067, for spinning mills. It is allowed. ONly 5% ITC is allowed, and any purchase @ 14.5%,  the ineligible ITC @ 9.5% has to be reversed, becz it is treated tht what the spares supplied to the manufacturer is categorised as " Industrial Input"


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