Vat set off quary

Mahavat 511 views 3 replies

I Puchase the Assets For Rs 9700 And on which 12.5% VAT Rs 1212/-

Now How Much I can take the Set Off and at what value I Can capitalises the said Machinary????

Replies (3)

on machinery which is used for production of goods full setoff is available, for office equipments u hav to apply 3% reduction (as per mvat)

for addl details visit d followin link (i got it smwhr while surfin) https://www.bcasonline.org/webadmin/subtop/attachedfiles/mvatact.htm

If the asset purchased is office equipment, furniture or fixtures and has been treated as capital assets and if the dealer is not engaged in the business of transferring these goods for any purpose than the corresponding set off is as follows :

Original cost of asset                               -          Rs. 9,700/-

Add : Reduction in set off (9700*3%)         -           Rs.   291/-

Total amount to be capitalised                  -          Rs. 9,991/-

Inout credit availabe    (1212 - 291)           -           Rs. 921/-

Kindly note that if the assets purchased is used as plant and machinery than full set off of Rs, 1,212/- is allowed.


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