vat credit

yes,you can take input Vat credit on plant & machinery.

You are eligible to claim input tax credit on capital assets

Hi singh,

Plant & Machinery will come under Capital goods, as per vat act capital goods input will take upto 3 years (FY) means u will take input first year only 1/3 rd and remain input take two years equally

regards

cnu

Dear Naina,

Since VAT is a state subject, mentioning of State to which the query belongs, I feel, will help to answer more accurately.

As far as in Karnataka, the VAT credit for input tax paid on purchase of capital goods is allowed to be adjusted in the month in which it is purchased, provided it is used in manufacture/processing of goods for sale.

Rgds/Dharmaraju

Dear, All

One of my client is in process of settingup manufacturing plant in Nasik. The client has purchased water pipeline which will be under ground from Nearby river to Plant. The water so received from river will be used for manufacturing purpose. 

My query is whether the comapny will be eligible for input credit on same.

Thanks

Mr amit,

are you asking VAT on pipeline or VAT on water?

The Company is in the process of setting up plant. the manufacturing process has not started as yer. The credit is on purchase of water pipes.

Regards

Dear Mr Amit,

Input Credit on purchase of water pipes has to be accumulated till the plant commences commercial production. The Tax credit can be taken in the year in which there is commencement of commercial production. So also, VAT credit is available for set off against output tax which will arise only after sale of commercial production.

I think, it is clear to you.