CA Manan Mehta (Chartered Accountant & ICAI Certified Indirect practitioner) (197 Points)
18 June 2012MY CLIENT HAS A FACTORY AT KIRTI NAGAR, DELHI, OF IRON STEEL RODS.. HE HAS RECENTLY CONTRACTED WITH IGL FOR A GAS SUPPLY IN HIS FACTORY ON MONTHLY BASIS.
HE IS PAYING RS. 13000 VAT PER MONTH TO IGL.
I WANT TO KNOW WHETHER HE IS ELIGIBLE TO CLAIM THE CREDIT OF THAT VAT PAID OF RS. 13000 ON THE TOTAL AMOUNT OF VAT PAYABLE ON THE SALE OF IRON AND STEEL RODS ?????????
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 18 June 2012
Mr Mana CA,
As per sec 9,sub sec7(c), it means that tax paid on consumables used in a job work is not allowed as input tax credit. Here as you are producing some taxable goods sold in Delhi then the tax paid on their purchase is allowed as ITC.
MJK
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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