VAT input credit on Capital Goods

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Can we set off the VAT input on capital goods purchased for the business requirements. eg VAT on purchase of construction material for constructing Building which will be used as super market.

Replies (12)

VAT on capital goods, eg. steel cement ,angle bar, round etc   is not available as input credit  under existing VAT rules. This view has been upheld in many cases.

Which Capital Goods are credited

against  what  we want to set of  our  input credit 

Please let me know whether we can claim VAT Set off for Capital Goods under Maharashtra VAT.

 

Please let me know whether we can claim VAT Set off for Capital Goods under Maharashtra VAT.

 

Plz let me know where,how &  when ,we can  claim vat set off  of capital goods purchase under delhi vat . please mail us -prakashmishraa @ yahoo.com

we are chemical manufacturing co. cement purchased for civil construction for the expansion of plant. whether tax paid on cement is vatable against chemical supplies.

vat credit on cement is not available

a lot on confusion on ITC on capital goods! but, it's not a matter for confusion because as VAT is concern_capital goods are entitled for ITC if  that capital goods directly or indirectly related with business for taxable items. ITC on capital goods like purchase against (C) concessional benefit of tax. you should have to prove that there is no revenue loss and that particular capital good is not listed as Non- creditable good   

can anybody quote the case law which prohibits taking VAT credit on purchase of capital material like cement under tamil nadu VAT act

Dear Members,

I am C.A. Dharam Singh I want to show my querry to you regarding input credit of capital goods .  It is urgent.

1.  Company  repair machinery and other equipments, then company take input credit of capital parts used during the repairing.

Pl tell me it is wrong policy or right policy.

Thanks with regards

C.A. Dharam Singh

 

1. Lets understand first that under VAT regime whatever input tax is paid on purchases including capital assets purchases and also vat on expenses inucrred are entitled for VAT setoff , which can be adjusted agaisnt VAT Payable.

2. VAT on capital assests purchases are subject to provisions of rules of respecitve states. In maharashtra state purchases which are used to erect , construct immovabale goods, no set off is avaliable. At the same time Capital assets like office equipment, furniture and fixture, elecrrical installation etc, dealer is entitled for VAT paid on it subject to retention of 3%

3. if dealer manufacturer only tax free goods, then treatement of capital goods vat input have different treatment.

4. Please state specific querry and state , then one can answer specifically

thats all for the pen right now


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