11 October 2011
Normally, VAT credit is allowed on purchases of Raw materials, Capital goods & Consumables.... (which directly linked with your Finished goods & manufacturing process)
I think in your business process water coolers is not coming in any of the above categories.
(Please also mention the state from which you belongs in case of asking questions relating to VAT as the VAT rules differ from state to state)
CAclubindia
