banner_ad

vat on capital goods

1147 views 1 replies

What is the procedure of claiming input credit in case of purchasing capital goods?

Replies (1)

Input Tax Credit in  case of Capital Goods Purchased

In India 32 states implemented VAT (Value Added Tax) and all the 32 states have their own VAT Act, Rules.

My personal experience says that Different states have different Provisions for claiming Input VAT Credit on Capital Goods Purchased.

  • Some of the states allow full amount of the Input VAT paid on Capital goods in the same month/quarter as the case may be.
  • Some states have ceiling i.e.  Input VAT paid on capital goods costing Rs. 1,00,000 will be allowed in the same month/quarter of the purchase and if Input VAT paid on Capital goods costing more than Rs. 1,00,000 will be allowed in 36 Installments.
  • Some states have provision like 30% of Input VAT will be claimed in first year,  40% in second year and rest of the Input VAT in third year.

Note: The provision stated above are very generic. It is advised to refer the respective state VAT rules for more calrity.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
ARTICLESHIP 02 May 2026
Accounts and Audit Assistant

Kothawade and Laddha

Thane

B.Com

View Details