fixed assets purchase

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2011 I have purchased my factory machinery with VAT....Do I take this as Input VAT or take full amt. of assets as Fixed Assets with take Input tax credit of VAT ?

of if I can take VAT input credit then give me the accounting entry of purchase machinery including VAT ?

thanks for your coopertion

B R Ramesh

B R Ramesh (Expert)
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16 April 2011 hI
yes you can avail 100% input on capital goods only when the capital goods used directly or indirectly for the production .

Fixed assests DR XXXX

Vat Input DR XXXX

Creditors CR XXXX