Company have purchase a Car for Rs. 700000 (including 4% Vat which comes to 26000/-)
how to adjust this 4% Input Vat
pls tell me asap
CA. Shwetank Vats
(Chartered Accountant)
(653 Points)
Replied 28 August 2009
Input Tax Credit taken on raw material, consumable, packing use in manufacturing and assest which direct related to production.
as per my view ITC can't claim on car
CA. Anoop Gadia
(CA MBA (Finance) B.Com)
(1717 Points)
Replied 30 August 2009
VAT means Value added tax which means it is taxed on incresed value of your treading goods so if company purshased car for resale than VAT can be allowed but it is buy for compay use than VAT addes to its value and company take dep. on Original + Vat value.
HARSH GOENKA
(MANAGER ACCOUNTS)
(268 Points)
Replied 31 August 2009
THE INPUT VAT HERE IS ON CAPITAL GOODS AND CREDIT CAN ONLY BE TAKEN ON MATERIAL CONSUMABLE AND PACKING
THEREFORE INPUT VAT ON CAR COULD NOT BE ADJUSTED WITH OUTPUT. INSTEAD U CAN ADD IT TO VALUE OF CAPITAL GOOD I.E. THE VALUE OF CAR TO BE BOOKED IN ACCOUNTS SHOULD BE Rs. 700000/-
BeyondConsultants
(CA/CS/LLB(DU))
(184 Points)
Replied 01 September 2009
CAR is not treated as capital asset eligible for VAT except in the case of CAR dealers.
So suggest you to capitalize VAT credit in the books along with cost.
Regards
Nikhil
9891950868
subramanya
(Professional)
(907 Points)
Replied 01 September 2009
| Originally posted by :radhakrishna | ||
| " | Company have purchase a Car for Rs. 700000 (including 4% Vat which comes to 26000/-) how to adjust this 4% Input Vat pls tell me asap |
" |
Hi Radhakrishna,
Generally Input tax paid on Motor vehicles cannot be claimed as Input tax credit.
Hence the same should be considred as cost
With regards,
Subramanya
V RENGARAJAN
(FINANCE EXECUTIVE)
(21 Points)
Replied 17 December 2010
SIR , OUR COMPANY NOW PURCHASED NEW MOTOR VEHCILE FOR GOODS CARRIER OF OUR MANUFACTURED PRODUCTS, SO THAT VAT CREDIT OF THE VEHCILE CAN BE TAKEN AS A CAPITAL GOODS OR NOT TO BE CLAIMED
Regards,
V.RENGARAJAN
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 17 December 2010
| Originally posted by : V RENGARAJAN | ||
 |
SIR , OUR COMPANY NOW PURCHASED NEW MOTOR VEHCILE FOR GOODS CARRIER OF OUR MANUFACTURED PRODUCTS, SO THAT VAT CREDIT OF THE VEHCILE CAN BE TAKEN AS A CAPITAL GOODS OR NOT TO BE CLAIMED Regards, V.RENGARAJAN |
 |
if you can confirm that this is a special type of car , not available in market for general transportation, and mandatory for delivery of our self products delivery ( like freezer vans) then only the same can be claimed.
Nitesh Kumar
(Consultant)
(42 Points)
Replied 18 December 2010
Input tax credit on capital goods also be available for traders and manufacturers. Tax credit on capital goods may be adjusted over a maximum of 36 equal monthly installments.The states may at their option reduce this number of installments. There is a negative list for capital goods(on the basis of principal already decided by the empowered committee) not ligible for input tax credit. In DVAT input can be taken in three equal annual installments.
Regards
Nitesh Kumar
AJAY PATYAL
(PRACTICE)
(24 Points)
Replied 18 March 2011
INPUT TAX CREDIT WILL RECIVED IN VAT BUT THERE LIST OF CAPITAL GODDS LIKE BUILDING MATIRAL, PLANT & MACHINERY AND OTHER THAT IS SHOWN IN THE LIST IS GIVEN THE ITC CREDIT ONLY.
AND BASIC THINK IS THAT ITC IS NOT CLAIMED IN A PARTICULAR YEAR BECOUSE IT IS CREDITED 1/3 TO ALL THREE YEAR...
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