11 June 2008
i want to know if a hospital can take credit of vat on items (medicines) purchased assuming it is registered and what is the case with regard to machinery purchased for performing operations
12 June 2008
every registered dealer under vat act is entiteled to take credit of tax paid on purchased goods called input tax credit, if hospital is a registered dealer under vat act , than it can take credit of ITC on purchased goods and as per vat act dealer can take credit of vat paid on capital goods, if capital goods are being use in the manufacture. machinery used in the operation of hospital not use in the manufacturing activity, so in this case this delaer can not take credit of VAT paid on machinery.
CAclubindia
