Any one can tell about the what are all assets are eligible for Input tax credit ???????(I Mean Vat Input Credit available for Capital goods), and also confirm me Vat Rates for the Tamil Nadu for capital goods?????????
rajendra (Article Assistance) (35 Points)
29 August 2012Any one can tell about the what are all assets are eligible for Input tax credit ???????(I Mean Vat Input Credit available for Capital goods), and also confirm me Vat Rates for the Tamil Nadu for capital goods?????????
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 29 August 2012
Mr Rajendra,
In Tamil Nadu,capital goods are not specified. Machinery and plants required for a
manufacturing process are called goods.VAT paid on their purchases can be claimed
as ITC at 50% in first year and the balance in the next two years,but only after commen-
cing production of taxable goods. After three years the unclaimed ITC of the capital
goods shall lapse.......MJK
CAclubindia
