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Input tax credit

SNEHASREE (ARTICLED ASSISTANT) (102 Points)

20 March 2009

Whether the manufacturer is eligible to take input tax credit available on the purchase of Computer, UPS,Xerox,scanner, Antivirus pack.

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4 Replies

(Guest)

NO...... input credit not available for Office Equipments.

>>Vipul Garg

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Anoop (Service) (345 Points)
Replied 23 March 2009

Input credit is applicable only on the products which is directly related with the trading goods. So, I am agree with Vipul that input credit is not available in office equipments.

Pravin Nemad-CWA (Cost Accountant) (60 Points)
Replied 25 March 2009

Under Cenvat Credit rule, Credit on Input material used in relation to final product is allowed as a credit, same rule is applicable to Vat as well, but there are some exception. In Mahrashtra VAT, if you Purchase Office equipment after sep 2007 & treate them as Capital Asset which is not transferable, then u are allowed to take credit on said purchase after reducing 3 % set off calculated on purchase price & balance will be allowed as a credit.

U need to check the provsion of respective state VAT act.

Anoop (Service) (345 Points)
Replied 25 March 2009

Originally posted by :Pravin Nemad
"	Under Cenvat Credit rule, Credit on Input material used in relation to final product is allowed as a credit, same rule is applicable to Vat as well, but there are some exception. In Mahrashtra VAT, if you Purchase Office equipment after sep 2007 & treate them as Capital Asset which is not transferable, then u are allowed to take credit on said purchase after reducing 3 % set off calculated on purchase price & balance will be allowed as a credit. U need to check the provsion of respective state VAT act.	"

Can v get input credit on capitalied items (like computers, machinery & furnitures etc.) in the state of Delhi?