18 September 2007
As per Rule 53 of the MVAT Act,2005 input Vat Paid Will be reduced to the extent of 4% on purchase of Furniture And Fixtures,Electrical Installations,Office Equipments.
However my Question is:
1)What all includes as Office Equipments? (Give some comprehensive list)
2)Do computers,fax machine, printers, safes,air conditioners,mobile sets,etc purchased for office use are to be termed as office equipments?
3)So,Vat paid @ 4% on computers purchased will not be available for Set-off?
06 November 2007
Set off rules have been amended to allow Vat on Capital Assets, which earlier were under negative list such as 1. Furniture & Fixture 2. Electrical installation 3. Office Equipment
Vat Credit has now been allowed on Assets – “CAPITALISED” after reducing 4% VAT for the following
1. Furniture Fixture – 8.5% 2. Office Equipment – 8.5% (where Vat charged is 12.5% on such equipments)
Full Credit of Vat as under on Assets “CAPITALISED” for the following
Capital goods if capitalised such as Computers and electrical installation having a Vat Rate of 4% will not be eligible for VAT credit as reduction of 4% will render it “0”