vat on capital assets

This query is : Resolved

padam singhvi (Querist)
Follow

03 February 2011 An Assessee pur Capital assets Exclude (Passenger Vechile)In rs. 1,00,000 and Vat @12.5% is rs. 12,500.let me tell us what would be treatment of capital assets in books of a/c. whether vat should be seprately claim by assessee in vat return.
Because as per AS 10 (Valuation of fixed Assets) says that any exp incurred for aquring of assets would be capitalised.
reply fast

Anand Agarwal

Anand Agarwal (Expert)
Follow

03 February 2011 Treatment differs according to Stats VAT laws. But in Maharashtra VAT credit is allowed on Plant and Machinery. And VAT credit is also allowed on other assets but there is retention of 3% on tht. VAT credit is not allowed on immovable property.