Ranjini (Accountant) (98 Points)
19 December 2012Hi All,
Please help me in dis......
I am working for Service Entity.... we have purchased Furniture for office purpose, in this tax Invoice they have Charged VAT of Rs-23000/-
Can i cliam Input tax under Service Tax Becuase We Dont File Sales Tax ? what happens if we have Sales Tax also
And Please Correct me if i wrong i have passed entry in our books
Furniture a/c dr xxx
Input Tax ac dr xxx
to Sundry Creditor xxx
sundry creditor a/c dr xxx
to bank xxx
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 19 December 2012
Sir,
Firstly, Office furniture not eligible for input credit of vat. VAT & secondly, Service Tax should not be adjusted
as a basic principle of indirect tax, If you are the ultimate consumer, you have to bear the tax burden. do not take the credit of vat paid. just add it to your cost and modify the entry as necessary
Ranjini
(Accountant)
(98 Points)
Replied 19 December 2012
Thank u Goutam
But Some where i Heard Input tax Can Take for Capital Goods as per sales tax ?
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 19 December 2012
You may hear and see many things in life.
Here you cannot claim input tax credit for VAT as you have no VAT registration as you do not have any output VAT liability.
Regards,
Ranjini
(Accountant)
(98 Points)
Replied 19 December 2012
Thank You Dipjyothi for valuable Information.
If we Have Registration of VAT & there is output liability then can we claim input tax for all capital goods what ever purchase after VAT registration ?
shibu
(Accountant)
(345 Points)
Replied 19 December 2012
Never adjust VAT with other taxes or vice versa with an exception between CST payable and VAT Credit
PRATHIMA REDDY
(CA )
(115 Points)
Replied 20 December 2012
sir,
Since you are purchasing furniture for office purpose you cannot adjust vat.Vat can be adjusted only if you are dealing purchases and sales of furniture with proper registration certificate.Here you are the consumer , so you have to bear the tax and it cannot be adjusted against another taxes..
CAclubindia
