Vat on fixed assets

Hi Friends... i want to know the correct accounting treatment of the following transaction considering the Income Tax Act , Maharashtra Value Aded Tax, AS-10 on Accounting for Fixed Assets  ?

Eg. :- Cost of Asset = Rs . 100

          Vat on above = Rs. 10

         As per VAT Laws, reduction in set-off is Rs. 4 and only Rs. 6 can be claimed as input tax credit

       So whether Rs. 4 can be capitalised since the same is not available as credit ?

      Please provide the clarification on the above matter...

 

Thanx and regards

 Manoj

 

Replies (3)

You have to capitalized Rs. 4/- because it is not available for set-off.

Agree with above


 

i too agree with above

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