Applicability of vat input credit in case of branch transfer

No,branch cann't avail the input tax credit on the goods purchased in the  state A.However ,HO is also restricted to claim input tax credit to extent of  goods sold in the state A by way of reduction in input tax credit corrosponding to the sale/transfer made to branch located in state B.(as per  the rule 53(3) of Maharastra Value Added Tax Rules'2005)

Dear Harikrishna,

The treatment of goods differ from state to state.

Let us know the state names also,

ho is in tamilnadu and branch is in andhra pradesh

Branch B can not claim VAT Credit & Purchase is made in HO & HO can claim Vat credit up to the eligible limit ( Which is calculated according to formula, e.g. in AP VAT more than 4% can be claimed fully & up to 4% to be calculated in ratio of taxable sale & exempt sale/Transaction)

SUPPOSE I M A COMPANY THEN CAN I TAKE VAT INPUTCREDIT ON MATERIAL USED FOR INTERIOR WORK OF MY SCHOOL.

Branch cannot avail input tax credit . Even HO should reverese the amout of Input Tax for the value of goods transfered to another state.

my answer is we calculated cogs in material which good s transfer to other state and calculate tax @ 4 %