VAT On Purchase Of Car ?

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Hi Friends,

1. If I purchase a car in the name of firm which is proprietory concern, then can i get a sett off against output vat ? 

2. is a car a capital goods & @ what rate vat is applicable?

Please guide me .

Regards

Sanjiv Shah

Replies (6)
As a Car is a Capital Good .and it Will Eligible for deprication in sec32 of uncome tax .bt as a question of VAt the Act does nt specify thae Rate on which the depricarion allowance provided
Dear, Which State you are talking about? Moreover, it is not clear for what purpose you will use the Car.
Hi Raman, I am talking about maharashtra state & it will be use for office purpose only.
for the purpose of taking input credit on capital goods the capital goods has been defined as follows; Capital goods means plant, machinery and equipment which are used either directly or indirectly for the purpose of trade. The act has used the word of capital goods not the capital assets. the capital assets word has a very wide meaning . it includes capital goods. it includes all type of capital assets. but capital goods refers to those assets only which are used in the process of trade. it does not include the furniture. motor vehicle etc. So you are not entitled to claim input credit on the purchase of car
but we can charge the depreciaton on car?
yes u can charge depreciation


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