Sir/ Madam,
e.g.
1.One Limited company bought one Machinery for Rs. 1040/- (1000+VAT @ 4%=40) in 15th Jan.2007
Here, the Input Tax of Rs. 40.
Whether we can claim Input of Rs.40/ in 1st FY. (06-07) (OR) can we claim Rs.20 i.e 50% in 1st FY. (06-07)
(or) one year completion of the date of purchase i.e (07-08 , Jan'08. monthly Return )
2. For the above machinery we purchased some ancilleries @ 12.5% VAT. In this case whether we can avail the VAT as INPUT VAT or this amount added with the machinery cost. Bcoz, In our Sales Tax circle, they told that for C.Goods only 4% VAT should be applicable.
3. What rate is correct to Capital goods whether 4% or 12.5%. which one we avail as ITC for C.Goods.
please clarrify.
CAclubindia
