Purchase asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2012 Dear sir
I want to purchase a machine ( asset) within tha state its cost is 200000 lac With 2% vat and same machine in out of state its cost is 195000 than which machine I purchase
plz ignor tha spelling mistake

thanx & regards
manoj Panday

CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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14 May 2012 Any tax/duty which is recoverable viz,available as Input Credit, duty drawback etc., doesnot form part of the cost. In your case, if u can take the input credit of 2% Vat, u need to exclude the VAT amount while evaluating two options. please consider the freight & other incidental cost, if any, before selecting any option.