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Karnataka Input VAT on Capital Goods

Shashanka M J (Student) (14 Points)

06 June 2007

What are the conditions to avail Credit of Input Vat on Capital Goods under Karnataka VAT Act 2003?

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7 Replies

Ahmed (CA student) (1105 Points)
Replied 06 September 2007

vat is compulsary

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SAMEER (CHARTERED ACCOUNTANT) (304 Points)
Replied 15 September 2007

Deduction of input tax in respect of Capital goods.- (1) Deduction of input tax shall be allowed to the registered dealer in respect of the purchase of capital goods for use in the business of sale of any goods in the course of export out of the territory of India and in the case of any other dealer in respect of the purchase of capital goods wholly or partly for use in the business of taxable goods. (2) Deduction of input tax under this Section shall be allowed only after commencement of commercial production, or sale of taxable goods or sale of any goods in the course of export out of the territory of the India by the registered dealer and shall be apportioned over a specified period, as may be prescribed. ‘Capital goods’ means plant, including cold storage and similar plant, machinery, goods vehicles, equipments, moulds, tools and jigs whose total cost is not less than an amount to be notified by the Government or the Commissioner, and used in the course of business other than for sale.