01 October 2010
we are a manufacturing company and we are selling goods at factory store , further we does't have a sole selling agents , as we are calculating vat from our customer . we are getting input credit on purchase of papers but regarding other things like loose and tools we are not getting vat credit as sales tax authorities disallowed it although we are paying vat on that items also . is any provision is under vat act to enjoy that tax credit also . please suggest on immediate basis
01 October 2010
If those loose and loose tools are directly used for the manufacture, then VAT credit will be allowed.There are AO's who does't know the law so in that case u can not do any thing.
CAclubindia
