Vat on petrol in- eligible for input vat credit?

CA Dauzi Pathan Imran Khan (Chartered Accountant in Practise)   (1678 Points)

26 March 2013  

 A small doubt regarding VAT in practical sense. I am an internal auditor for dealers of Automobile.
They will buy Petrol average 40 Litres per month. In Andhra Pradesh, Petrol is VATable at 31% under Special floor rate.

   My doubt is can we avail Input VAT credit on Special floor rate Vatable items i.e Petrol. If so, how the invoice should be?