Vat credit

A MANUFACRURAR PURCHASES MATERIAL @ 4% VAT AND AFTER MANUFACTURING OF FINISHED GOODS HE EXPORT THE GOODS. WHETHERE HE IS ELEGIBLE FOR VAT CREDIT ? IF YES ? WHICH AMOUNT ?

IF CREDIT IS AVAILABLE WHAT ARE BENEFIT TO GOVT.

 

THANKS

Replies (5)

Yes Input VAT is available on materials used for manufacture of the goods which is exported out of India as per VAT law. This provision of the Govt is to encourage exports as export increases the foreign exchange inflow to the country.

if sale in domestic market then credit available or not

It is available

Yes, Agree with consultant

In both cases Manufacturer eligible for Vat Credit

Yes, input vat credit available.

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