VAT input rule

We are a advertising company mainly attracting the Service Tax but one of the activity billing attracts VAT.

Is it true, under MVAT act that we can take credit of only those bills which are directly related to our output VAT billing ????

 

Replies (4)

Yes it is true..... You can avail credit of your input if you are showing output against that input.

No i think i should be more specific

See the thing is that if when we display ad we print the matter on flex paying VAT & charge the same to the client but our output VAT is less due to some free flexes given

Now can i set off my VAT liability with by taking input of stationary purchase & gold purchase for sales promotion, other business related VAt purchases??

Hi Kamlesh,

Please correct your question. If your output VAT is less then your Input VAT then where is the need to utilize Input of other purchases. If your Input VAT is less then your Output VAT then you will have to pay difference amount. You can not take Input credit of other purchases except capital Goods.

Regards

hi everyone i want to say that u can take in put on that items of which u hve taken registration . for example if u doing a business of electornic u can only take input on purchase relation of vat.  if u purchase  cement u can take claim on that it is ur expense i thnk it will clear ur all doubts

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