Itc on capital goods

This query is : Resolved

Rajesh Goyal (Querist)
Follow

14 February 2015 DEAR EXPERTS,

PLEASE GUIDE ME ON THE FOLLOWING ISSUES REGARDING ITC ON CAPITAL GOODS FOR A MANUFACTURING UNIT WHICH IS
GOING TO START PRODUCTION AND SETTING UP ITS FACTORY IN WEST BENGAL:

1. ITC ON MACHINERY PURCHASED.
2. SPARES PARTS PURCHASED FOR MACHINERY.
3. OTHER FACTORY ITEMS PURCHASED LIKE CAMERA, COOLERS ETC.
4. TIME PERIOD OF UTILISATION OF ITC.

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

21 February 2015 On capital goods ITC is admissible, but please note that everything which is being capitalized is not capital good in perview of VAT. there is definition of capital good in law and normally machinery and its part etc can be treated as capital good.
normally utilization period in 5 years, mean to say you have to avail 20% VAT credit in each year.