An assessee is governed under the MVAT Act and is filing his monthly return under form 233. He is dealer and repairer in watches.He has purchased office equipments on which VAT is separately charged. Whether he can take VAT setoff on the above assets purchased?
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VAT on capital asset
Replies (3)
As per my knowledge of reading mvat an assessee is using the capital goods for shope where he is trading taxable goods so he can clame in put tax credit but condition is 2% less from at what tax percentage charged by the vendor to him.
do not apply vat on capital assets
apply vat any fixed assets = 12.5%
electronic items= 4%
He can Take set-off on Office Equipment after 3% reduction as per Rule 53(7A), However if the said goods are Capital assets then he can claim Full Set-off.
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