Whether VAT paid on Furniture and Office Equipment can be used for setoff VAT and Excise Libility ? kindly provide the provision under CENVAT Credit Rule
Venkateswara Rao Sapare
(Accountant)
(1500 Points)
Replied 28 June 2010
| Originally posted by : Ameet | ||
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Whether VAT paid on Furniture and Office Equipment can be used for setoff VAT and Excise Libility ? kindly provide the provision under CENVAT Credit Rule |
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You have not let us to understand whether you are treading in "Furniture and Office Equipment" or purchased the same for Office Use.
Assuming the later part, may I come up with following lines:
You can not set off VAT on "Furniture and Office Equipment", which are purchased for office purpose, but not as regular goods with which you are treading. Hope, this point is clear, as far as VAT is concerned.
Similarly, we may assume that the subject "Furniture and Office Equipment" obviously is not put to manufacture or produce any goods / products ( which attract Excise Duty). Further, on the same even you can not take even CENVAT, by treating them as Capital goods., as the nature of "FURNITURE and OFFICE EQUIPMENT" is totally different.
varadarajan
(Online marketing)
(21 Points)
Replied 28 June 2010
Cenvat, or the Central Value Added Tax, is a component of the tax structure employed by many countries in the western section of Europe. The inspiration for Cenvat is derived from a tax system that is generally referred to as VAT, or a Value Added Tax. Both Cenvat and VAT are designed with the express purpose of minimizing a cascading effect when it comes to taxes on income, goods and services, and other forms of tax revenue. The aim of Cenvat is to aid in maintaining a tax structure that is considered equitable for both the citizens incurring the tax and the government that is collecting the tax revenue.
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Nitin Grover
(CS)
(1228 Points)
Replied 29 June 2010
Dear Amit
under VAT authority you can claim VAT only if its used for manufacturing process (of fixed assets) and goods used in business for traiding.
Regards
bikash
(student)
(25 Points)
Replied 29 June 2010
@ neha: since excise is levied on a waste incurred in association with a dutiable good,..similarly cenvaT credit is available on wastage...
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