Hai Friends,
We are in to manufacturing of Granite slabs, we do have a quarry for which we have purchased Capital goods (Tipper Vehicle) on which we have paid the VAT @ 12.5%, whether the said vat can be credited and adjusted from output vat.
raja (Sr. Excecutive Commercial) (32 Points)
12 June 2010Hai Friends,
We are in to manufacturing of Granite slabs, we do have a quarry for which we have purchased Capital goods (Tipper Vehicle) on which we have paid the VAT @ 12.5%, whether the said vat can be credited and adjusted from output vat.
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 12 June 2010
Dear Raja
ITC on vehicle can not be adjusted against Granite business. I reproduce the section below:-
(7) No registered dealer shall be entitled to input tax credit in respect of-
(a) goods purchased and accounted for in business but utilised for the purpose of providing
facility to the proprietor or partner or director including employees and in any residential
accommodation; or
(b) purchase of all automobiles including commercial vehicles, two wheelers and three
wheelers and spare parts for repair and maintenance thereof, unless the registered dealer is in the
business of dealing in such automobiles or spare parts; or
raja
(Sr. Excecutive Commercial)
(32 Points)
Replied 13 June 2010
Mr. Kanagaraj
Thanks for your comments,
I have asked for quarry operations, in Karnataka & jarkand vatact any vehicles used in mining process vat on the vehicles can be availd.
Kindly clarify is there an sections/act/crcular available in TNVAt act/Rules
CAclubindia
