capita;isation of taxes for Fixed Assets

This query is : Resolved

Kunal (Querist)
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19 March 2009 a manufacturing company has purchased fixed asset and is not capitalising the taxes like vat, cst , excise duty etc.

is their this policy right?
is vat / cst/ excise on Fixed Asset refundable

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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19 March 2009 Yes company's policy is right!! as ultimatly company is getting CENVAT so taxes are not gonna capitalise.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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19 March 2009 Yes company's policy is right!! as ultimatly company is getting CENVAT so taxes are not gonna capitalise.

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CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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19 March 2009 Please note there is no credit in case of CST. This is only for VAT & Excise duty.

Rakesh

Rakesh (Expert)
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19 March 2009 Only VAT & Excise Duty would be refunded as a credit and due to the same are seperate assets of the company it can not be clubed with fixed assets head.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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24 March 2009 For duty for which assessee is getting Credit will not allowed to be capitalize, and if credit is not available then only capitalization is allowed.