How to treat vat on fixed asset

Sermakani (Articled trainee) (50 Points)

09 September 2011  

Friends....

A company which is registered under VAT act has bought one computer as fixed asset for Rs. 20,000. VAT @ 4% of Rs. 800. Whether input credit is available?

Which amount should be capitalized?

note: Purchase is made in Tamilnadu State.