i'm assigned with up vat audit of company and i've doubts regarding purchases eligible for itc. i want to know that itc is available on what kind of purchases e.g. is vat paid on expenses like repairs, staff welfare eligible for itc. please explain is above said expenses are includable in turnover of purchases. mailid:kapoorknidhi@gmail.com
31 August 2009
Input tax credit(ITC) is not available on purchase of goods which are not directly related with manufacturing of goods . Further, ITC is not available on air coolers, air conditioners, electric fans, heaters, air circulators, water coolers, water purifiers used in factory or workshop where the same are not connected with manufacture or processing, packing of goods for sale by the dealer;
CAclubindia
