Tax Invoice - 2

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Hi

Repsected Members

Right now i am doing statutory audit of Public limited which is engaged in Manufacturing.

Now the case is i found that printing and stationary exp. made on TAX INVOICE basis

I feel that input vat paid on such stationary should be claim, but my C.A. told me that such item not used directly in production so credit can' be claimed.

Now i want to know whether My C.A. Committment is correct or not?

Please Reply

thanks
In advance

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

29 June 2010 Your C.A. is correct for Priniting and stationeery items we cannot take Input VAT

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
Follow

29 June 2010 ITC is allowed on goods purchased for resale or for use in manufacturing for resale

Upgrade to CAclubindia Pro. Subscribe Now!

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
Follow

29 June 2010 Yeah agree with the above experts. If suppose we agree with your view then we as a final consumer pay VAT on so many products then we should be able to get the credit of it but it is not so. As righty said by Mr. O P Agarwalla that ITC is allowed on goods purchased for resale or for manufacturing.