Packing material on input credit

This query is : Resolved

Ramesha.M (Querist)
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15 September 2012 Dear sir,

we are operating manufacturing industries we using packing material but it is not using as raw material after finishing of the product we using packing material so can we claim input tax credit on packing material

please tell me

Regards
Ramesha.m

U S Sharma

U S Sharma (Expert)
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15 September 2012 sure, you can take credit on packing materials, as it is mandatory( you have to establish it ) to pack the goods for safety and transportation and hence qualify for input credit.

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CA Lokesh Pokharna

CA Lokesh Pokharna (Expert)
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15 September 2012 agree with sharma sir

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Ramesha.M

Ramesha.M (Querist)
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15 September 2012 Dear sir,

suppose the invoice had no input credit that means exempted can we take that invoice purchase entry or it will shown direct expenses? please tell me

Thanking you

Regards
Ramesha.m

U S Sharma

U S Sharma (Expert)
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15 September 2012 input credit availed or not, does not make it different from purchase :) it would still be part of purchase

if the vat is not charged then department may initiate the levy of tax on unregisterred purchase.

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Ramesha.M

Ramesha.M (Querist)
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15 September 2012 Dear sir,

sure sir it is not direct expenses? it is a part of purchase ""because in our firm it is not uses for raw material it is only for packing material to used.

can we take as purchase?

Thanking you
Regards
Ramesha.m

U S Sharma

U S Sharma (Expert)
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15 September 2012 purchase is also a direct expense :)similer is "packing purchase"

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