tax consultant
154 Points
Joined December 2008
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