VAT on purchase of Airconditioner

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varun gupta (Querist)
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22 May 2009 A manufacturing Unit purchases an AC for its office and bill includes VAT also. Can it take the Input credit for the VAT amt paid?

C.A.Javid Patel (Expert)
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22 May 2009 Yes it can take input after reduction of 2%

Eg.
if assest id of 100 & vatis 4 (assum 4%)

then vat will be Rs 2

varun gupta (Querist)
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23 May 2009 Why this 2% is to be reduced?

Sanjeev Kumar (Expert)
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23 May 2009 No, A.C. for use in office i.e. not concern with manufacturing then as per Delhi VAT Act, credit is not allowed.

varun gupta (Querist)
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25 May 2009 But i think VAT input credit can be taken for Fixed Asset purchases. Pls correct if I am wrong!

Sanjeev Kumar (Expert)
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28 May 2009 please check schedule -7 under Delhi VAT Act.

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