06 December 2011
want to know, whether some is eligible to take credit input under UP VAT, for the tax paying on goods purchased from UP and consumed in construction of kitchen/ restaurant building. though there is only purchases for said building construction. no sale is executed because restaurant is under construction.
07 December 2011
There are two options available with You:-
1. Either take the credit of input tax on the goods purchased and then avail such credit against goods that will be sold after the said restaurant construction. In this case you will have to carry forward the credit to the next period by filing VAT returns.
2. Or you can simply add the value of VAT levied on the goods purchased to their cost and capitalise them and claim depreciation upon them.
CAclubindia
