Mvat credit on fixed assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2011 can MVAT credit be claimed on fixed asset, if the VAT component is capitalised and depreciation is being claimed on the same.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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10 December 2011 Mr Author, What do you mean by fixed assets..?If it is an immovable asset the VAT paid on purchases made for that asset can not be claimed credit.In some states like Karnataka the assets(capital goods)are listed in a notification.Only the VAT paid on such capital goods(machineries,plants etc)are eligible for input credit.Depreciation is allowable on all capital assets and it does not have bearing claiming of input credit...MJK