Input Tax Credit

This query is : Resolved

Napa Rajesh (Querist)
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13 August 2008 This is rajesh working in sugar industry in Andhrapradesh.

i have some doubts relating to input tax credit eligible on purchase of machinery spares and lubricants and other purchases made by the company.

we are selling sugar, molasess, bagasse and waste iron scrap.

sugar exempted product
Bagasse 4% Tax
iron scrap 12.5% Tax

we are purchasing goods at 4% and 12.5% tax rates

Example:

Sugar Sales 1,00,00,000
Bagasse sales 5,00,000
Scrap sales 2,25,000

input tax paid

Tax paid on 4% purchases 34,225
Tax paid on 12.5% purchases 45,789

How much input tax credit can be availed (elibigle for me)

CA Naveen Kumar Agrawal

CA Naveen Kumar Agrawal (Expert)
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13 August 2008 if ur company purchases these material from a dealer with in the state then ur company can claim input tax credit of Rs.48125/-(500000*4% + 225000*12.5%) and carry forward the balancing amt of Rs.31889/- (34225+45789-48125)to next period

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)
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13 August 2008 yes it will be like this.

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Rahul Jaiswal

Rahul Jaiswal (Expert)
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14 August 2008 You Can Take the Whole Input of 4% as well as 12.5% because in Vat there is no one to one Relation to be maintained but the purchase and sale must be in same state