Reduction in mvat set off

Dear Anirudha,

A plain reading of Rule 53(7A) clearly suggest that office equipment is subject to retention. In such case we should even look into the contention of the company as well as statutory auditors, whether they have classified the product as PM or Office equipment. 

In case of one of my client full setoff has been availed in such case which has not been disallowed by the department( I WUD NOT GIVE ANY NAMES).

If you are a vat auditor, i would suggest you to give full setoff on the same and give appropriate note in the audit report. Let the department decide on the case.