if i have a trading company and we have purchased furniture for office purpose will i get vat inpput credit.i am not trading in furnitures.
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You have purchased furniture for office use purpose not trading purpose. so you are not able take input vat credit.
Vishal ji,
yes, you can claim vat input credit, subject to 4% reduction in credit.
e.g.
5% VAT is charged on purchase of furniture (capital asset). As per rule 4% REDUCTION will applicable and only 1% VAT input will be allowed. 4% reduction is to be shown in the books of accounts.
Members please rectify me if I'm wrong.
Yes, you can claim input credit even in case of capital assets also.
Yes, you can claim input credit even in case of capital assets also.
Yes, you can claim input credit even in case of capital assets also.
Yes, you can claim input credit even in case of capital assets also.
Yes, you can claim input credit even in case of capital assets also.
Please look at the local VAT rules on availing input credit on Fixed Asset Purchases. Generally, in TN 50% credit is available in the year of purchase and balance 50% can be availed in next year.
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