Deeps (Article Assisstant) (2485 Points)
18 November 2009If Asset is purchased by a manufaturing Unit and is used in the Office and not for production, then can VAT Credit be availed on that?
Eg. X, a manufacturing unit, purchased Furniture and is put to use in the office. Then VAT paid to be capitalised or input credit can be availed?
Pl. Reply
Thanks in advance:)
Zainul Tawawalla
(Audit )
(101 Points)
Replied 18 November 2009
Hi,
I am not very sure but I think that VAT credit would be available only to the extent of 4% even if the purchased article carries more then 4% VAT.
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 28 November 2009
Kindly note that VAT credit should not avail while capitalsing an item as an asset since it has not put into the manufacturing/production activity.This is the usual procedure adopted by most of the companies.
Anand
(CWA (final) Asst Manager)
(49 Points)
Replied 29 November 2009
Vat credit is available on furniture = actual vat paid - 3%
Means - If VAT paid 4% on furniture, 1% VAT credit will be available.
If VAT paid 12.5%, 9.5% credit will be available.
CAclubindia
