Vat credit on packing material

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 November 2012
Hi

We have purchased packing material & shown as purchases.

This packing material is used in a material which is exempted.

My query is, can I availed vat credit on packing material which is use for exempted sale material

CA. Hari Kishan

CA. Hari Kishan (Expert)
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06 November 2012 VAT input tax credit shall not be eligible as we are not having output as taxable sales.. since the final goods sold are exempted, packing material shall take the color of the exempted goods and hence no input tax credit shall be avialable..