Vat input on F. Assets
This query is : Resolved
08 March 2011
Sir,
If we make any fixed assets purchase and has been engaged in that vat, then how we will get her input.
please urgent
If we make any fixed assets purchase and has been engaged in that vat, then how we will get her input.
please urgent
11 March 2011
Input of VAT on Capital Goods/Fix Assets is depends on nature of business and state wise, please provide the name of state and assets.
11 March 2011
Sir,
As per your demand
Company:- Manufacturing
State- Delhi
Assets:- Machine
Sir,
If we make any fixed assets purchase and has been engaged in that vat, then how we will get her input.
please urgent
As per your demand
Company:- Manufacturing
State- Delhi
Assets:- Machine
Sir,
If we make any fixed assets purchase and has been engaged in that vat, then how we will get her input.
please urgent
11 March 2011
Yes You can get the credit of Input VAT of Machines, 1/3 rd in tax period of bill raised to you and balance 2/3 in next two tax periods. But make shure that You have Tax Invoice, and machine is used to manufecture or paking of taxable items only in (DVAT). If said machine is used to manufecture or packing of VAT (in DVAT) exempted goods then you can't claim credit of VAT input. Fur further clearification please read the below 9th Clause of DVAT for TAX CREDIT-:
9)(a)Notwithstanding anything contained to the contrary in sub-sections (1) and (3) and subject to sub-section (2), tax credit in respect of capital goods shall be allowed as follows
(i) 1/3rd of the input tax on such capital goods, in the same tax period, in which tax credits arises
(ii) Balance 2/3rd of such input tax in equal proportions in two immediately successive financial years
Provided that, where the dealer sells such capital goods, the dealer shall be allowed as tax credit, the balance amount of the input tax, if any, in respect of such capital goods as has not been earlier availed as tax credit. Such tax credit shall be allowed in the tax period in which such capital goods are sold and only after adjusting the output tax payable by him.
Provided further that, where the dealer exports from Delhi such capital goods otherwise than by way of sale, the dealer shall be allowed as tax credit, the balance amount of the input tax, if any, in respect of such capital goods as has not been availed earlier as tax credit, in the tax period in which the such capital goods are transferred and as reduced by the prescribed percentage of the purchase price of such capital goods.
Provided further that, no tax credit in respect of capital goods shall be allowed if such capital goods are used exclusively for the purpose of making sale of exempted goods.
Provided further that no tax credit in respect of capital goods shall be allowed on that part of the value of such capital goods which represents the amount of input tax on such capital goods, which the dealer claims as depreciation under section 32 of the Income Tax Act, 1961 (43 of 1961).
9)(a)Notwithstanding anything contained to the contrary in sub-sections (1) and (3) and subject to sub-section (2), tax credit in respect of capital goods shall be allowed as follows
(i) 1/3rd of the input tax on such capital goods, in the same tax period, in which tax credits arises
(ii) Balance 2/3rd of such input tax in equal proportions in two immediately successive financial years
Provided that, where the dealer sells such capital goods, the dealer shall be allowed as tax credit, the balance amount of the input tax, if any, in respect of such capital goods as has not been earlier availed as tax credit. Such tax credit shall be allowed in the tax period in which such capital goods are sold and only after adjusting the output tax payable by him.
Provided further that, where the dealer exports from Delhi such capital goods otherwise than by way of sale, the dealer shall be allowed as tax credit, the balance amount of the input tax, if any, in respect of such capital goods as has not been availed earlier as tax credit, in the tax period in which the such capital goods are transferred and as reduced by the prescribed percentage of the purchase price of such capital goods.
Provided further that, no tax credit in respect of capital goods shall be allowed if such capital goods are used exclusively for the purpose of making sale of exempted goods.
Provided further that no tax credit in respect of capital goods shall be allowed on that part of the value of such capital goods which represents the amount of input tax on such capital goods, which the dealer claims as depreciation under section 32 of the Income Tax Act, 1961 (43 of 1961).
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