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Can Vat credit on capital goods be availed

arun (ca student) (194 Points)

27 June 2008

If a manufacturing concern (Wood Doors manufacturer) taking vat credit on computer purchased. Is it correct or not? Pls reply as early as possible.

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9 Replies

praveen reddy (practicing Chartered Accountant) (55 Points)
Replied 27 June 2008

in my opinion i think you can take credit

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CA. Arul Mozhi Varman (Consultant) (286 Points)
Replied 27 June 2008

Yes there is a separate column for Input Credit availed from Capital goods. Capital Goods except Air Conditioner are allowed for Input Tax credit

Ibrahim (Salaried) (85 Points)
Replied 27 June 2008

Yes u can take credit if the invoice is Tax Invoice & Break up of Vat given on Invoice and supplier shoud have Vat Tin number

(Guest)

Vat Credit on capital goods can be taken if capital goods are use for in factory or for manufactering purpose

in ur case if computer are use for office purpose then vat credit will not be avilable

Raj Patni

Sanjeev Kumar (Private) (895 Points)
Replied 01 July 2008

in your if computer use for drawings etc. for maufacturing items than you seems to be entitled but be carefull because it's not available under IIIrd schedule Part_B, i.e. list of capital goods otherwise answer is negative. Computer not covered for ITC

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Mayank Gupta (Service) (20 Points)
Replied 10 July 2008

No, you can't avail the VAT Credit in this case as it is not part of your business.

T.S.RAMAMURTHY (Asst.Manager Finance) (21 Points)
Replied 01 February 2010

can you please send me tamilnadu vat negative list for capital goods. Please reply at the earlist.

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 01 February 2010

You can take credit of vat after reduction.

Kaushal (PROPERIETOR) (52 Points)
Replied 27 March 2010

Even I want to know the same thing. In case of printing business, new furniture and some renovation is done and on that VAT is paid. Can credit be claimed?