DEAR FRIENDS
OUE COMPANY BASED IN MUMBAI IS RUNNING A BUSINESS OF DEALING IN CARS AND ALSO WORKSHOPS FOR CAR REPAIRS. THE COMPANY HAD PURCHASED FIXED ASSETS LIKE FURNITURE FOR WORKSHOP AND OFFICE EQUIPMENTS FOR THEIR SHOWROOM AND PAID MVAT ON THAT. CAN THE COMAPNY CLAIM CREDIT OR SETOFF FOR THE SAME AS PER MVAT.
can claim partial set off @ 3% but better veryfy with your tax consultant.
read rule 53 under mvat act retention in fixed assets 3% retention.....
Rule 53 and 54 would clarify your doubts.
Rule 53 would allow you a set off after a retention of 3% on the Office Equipments installed in your Showroom, which is essentially treated as "office" under MVAT.
Rule 54 will come into play if the purchases are effected in the period 01-04-2005 to 07-09-2006. If purchases of furniture, office equipments are made in this period, then no set off is allowed as per this Rule.
Agree with all views.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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