Input tax credit

This query is : Resolved

GANGADHARAN (Querist)
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14 September 2012 Sirs:

Can we take input tax credit for the items which is for resale-interstate or service?

Thanks in advance
G. Gangadharan

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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14 September 2012 While doing Interstate sale CST will be levied.so no input can be taken

but while service - no such restrictions. you can take even outside state service tax also as input. since Service tax is central tax

GANGADHARAN

GANGADHARAN (Querist)
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15 September 2012 Dear Sirs:

Thanks for the reply. I need one more clarity that while local purchase, we do not know, we will resale locally or inter state, service or stock. In such circumstances, can we take input tax credit?

Thanks in advance

G. Gangadharan

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Guest

Guest (Expert)

15 September 2012 In case if you claim input credit in such then you must be able to prove that the inputs utilised are used for local sale only.

GANGADHARAN

GANGADHARAN (Querist)
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15 September 2012 Sirs:
In our case, we may purchase this month and take the input tax credit. But sales may take up after 3-4 months and it may be CST or stock transfer. In this case, what we can do?
Thanks
G. Gangadharn