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Vat setoff

suresh (accountS ) (158 Points)

21 November 2011

1.how much VAT set off we can claim on computer purchased for our office under purchase vat 5%

2.will we get any service tax benefit on office equipment purchases bill.

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4 Replies

Tripti ( CA, MBA, CPA) (no) (132 Points)
Replied 21 November 2011

Input tax VAT credit on capital goods purchased is available for setoff on 36 monthly basis against output tax VAT or CST... Its depends on Policy of each state. Some states provided 100% setoff in 1st month..

Tripti ( CA, MBA, CPA) (no) (132 Points)
Replied 21 November 2011

Input tax VAT credit on capital goods purchased is available for setoff in 36 months equally monthly basis against output tax VAT or CST... But some states provided 100% setoff in 1st year..

praveen (Chartered Accountant) (6971 Points)
Replied 21 November 2011

Please also check if the said computer is in the negative taxation list. If is present then no set off is available.

Moreover the fact of use has to be verified. If it is used in manufacture or providing taxable sale only then the set off is possible. If it is used for other purposes the input vat cannot be cliamed.

Cenvat credit is not allowed on office equipment purchases.

Brajesh gautam (student) (232 Points)
Replied 08 December 2011

dear sir

Pl tell me what is negative taxation list and what is treatment in delhi for availing credit agst capital goods in vat and if we purchase the capital goods from outside the state then can cst be adjusted the agst the tax on purchase.