We have rebuilding expenditure for Plant & Machinery and received VAT Invoice for parts, consumables etc. How the VAT credit utilised? Whether VAT credit utilised in every month or utilised when the expenditure transfered to Fixed Assets.
CA.Shailesh Prajapati (Manager-Account & Tax) (28 Points)
05 October 2012We have rebuilding expenditure for Plant & Machinery and received VAT Invoice for parts, consumables etc. How the VAT credit utilised? Whether VAT credit utilised in every month or utilised when the expenditure transfered to Fixed Assets.
Piyush Tanwar
(Assistant Manager - Accounts)
(1332 Points)
Replied 05 October 2012
u can claim VAT credit in four parts.
CA.Shailesh Prajapati
(Manager-Account & Tax)
(28 Points)
Replied 09 October 2012
Rebuilding Expenditure means expenses incurred for old machine to bring in condition to use for production and capitalised the value when ready to put to use. When VAT credit taken for such expenditure?
Piyush Tanwar
(Assistant Manager - Accounts)
(1332 Points)
Replied 09 October 2012
You can claim credit after completion of work of construction. or when u sold dat one!
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