1.We have purchased capital Goods for the business can we claim Input tax credit against output? 2. Is there any condition to claim Input tax credit? (apportionate no of months) 3.if we claim input tax credit can we claim depreciation on tax amount? 4.which is the best option?
13 December 2011
Mr. Nagaraj, VAT paid on purchase of capital goods can be claimed as input tax in full,but the condition is (1) it should be one of the listed machineries/goods in the relevant notifications(2) it should be used to produce taxable goods(3) deduction is allowed only after such commercial production begins.It has no link with the depreciation claim......MJK
SIR CAN YOU PROVIDE ME THE NOTIFICATION, SO THAT SUBSEQUENTLY I CAN REFER THE NOTIFICATION AND TAKE DECISION.
CAN WE CLAIM FULL INPUT TAX CREDIT ON THE CAPITAL GOODS IN THE SAME MONTH OF PURCHASE? REASON FOR RAISING THE ISSUE IS INPUT CREDIT ON CAPITAL GOODS IS HIGHER.
15 December 2011
Mr Nagaraj, I will give you two notifications Viz:(1)FD 316 CSL 2005(1) dated 5-8-2005 and (2)FD 116 CSL 2005(8) dated 31-3-2006, see these notifications in any VAT Act book or through the web site of commercial tax department find out whether your machine fits into any of the listed items. You can claim it in one month itself in which you start production.... MJK
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