Vat paid on capital assets

Dear All

I am confussed about the tretment for VAT Paid on Capital Assets.

As per my knowledge VAT paid on capital assets are eligible to set off 1/3 each year but maximum in 3 year and full amount

Whether my tretment correct or not?

 

Applicable State MAHARASHTRA VAT LAW

 

Please !!!!!!!

Replies (3)

i think in maharashtra the whole of the VAT on capital goods can be taken as input.

but i might be wrong. I read this in the ICAI study material

 

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In Maharashtra, you can take and utilise the Vat credit in the same year of purchase. There is no special treatment for Vat in Maharashtra state.

input credit on can be taken on capital  goods on 50% of the purchase price on the year of purchase and the remaining 50% in 36 montly instalmants after the commencement of production.this is as per the most recent provisions.

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