30 January 2012
dear experts, please inform the rate of input tax allowable on purchase of furnace oil as per section 14 of kvat act 2003 . If any new notification in this regard kindly inform.
31 January 2012
Input tax on purchase of furnace oil is to be restricted as per sec 11(6) read with section 14. The %age of restriction shall be 4% or a lower rate as may be notified. The present notified rate is 2%. So you could disallow 2% and claim for 12% balance. see notif no.FD 507 csl 2007(IV) dtd 24.03.2008
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