Input credit on capital good

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2013 We are the manufacturer of cloths. We have purchased computer Rs. 22000, furniture Rs. 18000/- and Machinery Rs. 35000/- + vat @ 12.5%.

Can I claim Full vat input @12.5% against output tax.

Please suggest me as per MVAT Act.

Thanks

CA Ankit Oberoi

CA Ankit Oberoi (Expert)
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15 April 2013 Input tax credit on capital goods will also be applicable for traders & manufacturers. Tax credit on capital goods may be adjusted over a maximum of 36 equal monthly installments. The state may at their option reduce the installments

Thus you can avail the input tax credit of the VAT paid.