Query on dvat

587 views 2 replies

Is it compulsory to take VAT credit on capital good purchased or we can capitalise the VAt amount under DVAt.

Eg,

the company has purchased some weighing machine for weighing the goods to sell of nominal amount and capitalise the VAT amount. Is it compulsory to take VAT credit and revise the VAT returns, since the amount of machine purchased and VAT thereon is of nominal amount.

Plz reply asap.

thanks in advance..

 

Replies (2)
No, it is not necessary to take credit on capital goods. It is just good conveyance to take credit in settlement of liability, but if it is nominal amount, you can ignore it and take it as a part of cost of capital goods.

Agree with Bhandari


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