24 November 2012
Best wishes of the day, please tell me,when a manufacturer purchases raw material and he used these for the purpose of manufacturing of exempted goods under VAT, is he avail ITC?
29 November 2012
ITC will be available for purchases of raw material, if mgf. goods are tax free goods (0% Tax) there will be reduction u/r. 53(2), otherwise full set off will be available. Goods exempted from tax does not mean the tax free goods, exemption is to unit from payment of tax.
CAclubindia
