Whether vat paid against property purchased

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2011 Please tell me whether vat paid on purchased of commercial property will be eligible for set off against vat payable on sell of goods.

Krishna Mohan

Krishna Mohan (Expert)
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26 December 2011 If the commercial property is classified as asset in the books of accounts, you cannot set-off the VAT paid. If the property is treated as stock, you can take the VAT credit.

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Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2011 AND pls. also tell me whether service tax charged on purchased of property can be availed as cenvat against sale of goods.

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Krishna Mohan

Krishna Mohan (Expert)
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27 December 2011 Same analog applies to Service Tax also. The ST component has to be added to the cost of property.