28 March 2008
I purchase a machinery for my plant purpose. I take the machinery under the head of fixed asset. input vat is 12.5% charged on the machinery in invoice. shall i claim input tax on the said machinery.is it capital expenditure or revenue expenditure.
28 March 2008
YOU CAN CLAIM ONLY 50% OF THE INPUT VAT CREDIT IN THE YEAR OF PURCHASE AND DO NOT CAPITALIZE THE AMOUNT OF VAT ,BEING YOU ARE TAKING CREDIT YOU ARE NOT LIABLE TO CHARGE DEPRICIATION ON THIS AMOUNT
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