VAT credit on car purchased

Vasant Mudholkar (Manager) (43 Points)

18 April 2011

Hi all,

We have purchased a car in oct 2010.

Can we take vat credit of the car while calculating the VAT liability.

Car is purchased on my dads name as he is proprietor of the company.

Regards

Vasant

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8 Replies

Devendra (Chartered Accountant) (4765 Points)
Replied 18 April 2011

Input VAT on purchase of Car cannot be claimed while computing the VAT liability.

Regards,

Devendra

1 Like

Ashish Jain (.Net Developer) (641 Points)
Replied 19 April 2011

it is not input in manufacture a product so u can not get vat credit of the car while calculating the VAT liability.

1 Like

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 19 April 2011

It falls under category of Input tax restricted goods. Hence you can not claim VAT credit.

Regards

Dayananda

1 Like

Love Pumreja (Senior Article) (49 Points)
Replied 19 April 2011

You cannot claim vat credit of Car,although it is a capital asset but it is a personal asset for human consumption ,hence vat credit is not allowed.Suppose u have purchased plant & Mach for that input is aloowed .

1 Like

Love Pumreja (Senior Article) (49 Points)
Replied 19 April 2011

1 Like

CA Govind Gupta (Proprietor) (152 Points)
Replied 19 April 2011

No, Vat is only claimed of thats goods which directly relates to the buisness of the assessee.

So, vat is not claimed for the same.

1 Like

U S Sharma (glidor@gmail.com) (21036 Points)
Replied 19 April 2011

car is neither input, nor capital goods classified as plant and machinery, hence no input credit allowed,

Exception : person engaged in dealing in car buy and sales can take input credit for set off in sale of car.

1 Like

JITESH KUMAR GUPTA (AUDITING AND ACCOUNTING ALSO FIGHTING UTTHA PATAK) (37 Points)
Replied 02 February 2012

NO VAT CAN BE CLAIMED ON THAT ASSETS WHICH IS DIRECTLY OR INDIRECTLY INVOLVED MANUFACTURING OR PRODUCTION ACTIVITY SO YOU CANNOT CLAIMED VAT ON CAR BECAUSE CAR IS A CAPITAL ASSET THAT'S NOT INVOLVED IN MANUFACTURING OR PRODUCTION ACTIVITY OK GOT IT.............