Input tax credit

sony10 (Manufacturer) (113 Points)

17 October 2013  

Hello,  Sorry to post it again in main section of VAT, earlier I have posted the same query in Others category under Vat and didn't got any reply...

We sell our manufactured items @ 6.05% (including surcharge). I have following query regarding input tax credit.

1. For packing of goods we purchase plywoods, etc. @ 14.30% (including surcharge). Whether we can claim ITC at full rate or @ 6.05% only?

2. We use lubricating oil, etc. in production process @ 14.30%. Whether we can claim ITC at full rate or @ 6.05% only?

3. For electric motors and AC drives purchased for installing on machinery to be sold AND also sometimes used for own machinery as Capital Goods both @ 14.30%. Can we claim full ITC for both purpose even if we sell our item at either 6.05% or 2% against form C?

Thanks in advance for reply.