Hello
We are a small business that is providing machinery maintenance services to customers in Mumbai. We have purchased a maruti eeco van in partnership company name for the purpose of carrying tools & transport for our technicians
We are also supplying some spare parts for which we charge VAT to our customer
Can we claim set off for the VAT we paid for the vehicle, against the VAT payments we will deposit for the spares sales?
Our accountant has advised us to take the entire value of car (incl. VAT) as the asset value and claim depreciation on the total rather than split between price & VAT.
He says it is easier to deal with IT rather than Sales Tax and therefore advising not to claim any VAT setoff?
What should we do? Please give suggestions/comments
Thank you
CAclubindia
