Fixed asset

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Ravi (Querist)
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02 October 2014 wanted to know, when i buy fixed assets like computers for an proprietory firm, how do i show this i.e. as expenses or as fixed asset,

if i show this as fixed assed, can i claim input VAT while filing monthly VAT returns.

CA Ashish Lodha

CA Ashish Lodha (Expert)
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03 October 2014 Fixed asset needs to be booked as fixed asset, & for claiming VAT simple rule is there that it should support provision for output service, as you mentioned that you have purchase computer you can claim VAT on it as the same is used for business purpose...

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Damodaran

Damodaran (Expert)
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04 October 2014 You can claim input, if the same used for manufacturing and process of resale. Office and admin assets cannot be considered as capital goods under vat act. Pls refer capital goods definition for more clarity

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CA Ashish Lodha

CA Ashish Lodha (Expert)
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17 October 2014 (See section 9) List of Non-Creditable Goods Sl. No. Descripttion of Non-Creditable Goods 1 Subject to clauses 2 and 3 of this Schedule, the following goods shall be “non-creditable goods” for the purposes of this Act: [1][(i) All automobiles including commercial vehicles, and two and three wheelers, and spare parts for repairs and maintenance and tyres and tubes thereof;] [2] [(ii) Fuels in the form of petrol, diesel, kerosene, LPG, CNG, PNG and coal;] (iii) Conventional clothing and footwear, clothing fabrics; (iv) Food for human consumption; (v) Beverages for human consumption; (vi) Goods designed, and used predominantly for, the provision of entertainment including television receivers, video cassette players, radios, stereo systems, audio cassette player, CD players, DVD players, computer game consoles and computer games, cameras of any kind; [3][(vii) Air conditioners, air conditioning plants or units other than those used for manufacturing purposes; air coolers, fans and air circulators;] (viii) Tobacco in any form and tobacco products. [4][(ix) Office equipments, furniture, carpets, stationary items, advertisement and publicity materials, sanitation equipments, fixtures including electrical fixtures and fittings, generators and electrical installation; (x) Elevators (lifts); (xi) Computers other than those used for the purpose in normal business; (xii) All kinds of cranes, earthmovers, JCB, excavators, road rollers, concrete mixing machines and other similar machineries; (xiii) Goods for personal consumption or for gifts; (xiv) Goods purchased and accounted for in business but utilised for the facility to the employees; and (xv) Goods used for construction of or incorporation in civil structures and immovable goods or properties not constituting part of the works contracts.]

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CA Ashish Lodha

CA Ashish Lodha (Expert)
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17 October 2014 Please refer for better clarity....