VAT Input Credit

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PRATIK PARKHI (Querist)
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07 July 2010 A company under audit is into the business of renting a computer.
1.Can they claim vat input credit for payment made towards repairs of motor vehicle exclusively used for business purpose?
2.Can they claim vat input credit for payment made towards staff welfare expenses,office expenses which are incurred during the normal course of business?
Regards
Pratik

Akhil Agrawal

Akhil Agrawal (Expert)
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07 July 2010 No , well it depends mostly on the state tax laws regarding Vat Inputs

But most of the state laws are same so i will like to say

that for motor vehicles repairs it will not be available as it is available on the purchase of the Machineries only

I am sure that for staff welfare exp & office exp it will not be provided

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 July 2010 First Renting of computer -is it covered under VAT?

Akhil Agrawal

Akhil Agrawal (Expert)
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08 July 2010 Yes that also is a point

CA Kamal Gangaramani

CA Kamal Gangaramani (Expert)
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08 July 2010 I think in most of the states the expenditure will be allowed as the same is debited to profit and loss account.

Mainly fuel expenses is not allowed, but there is usually no restriction in car repairs used in bussines.

Also I assume you are Registered under vat law as you are asking this question and have same amount of tax collected: which you want to adjust against vat input credit.

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