Sanjeev R Sardesai (Articleship) (64 Points)
21 December 2013Dear Experts,
Please tell me in detail what is INPUT TAX RESTRICTED GOODS under Karnataka VAT?
Thanks in advance
Sanjeev
Deepak Gupta
(CA Student)
(15922 Points)
Replied 21 December 2013
| Originally posted by : Sanjeev R Sardesai | ||
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Dear Experts, Please tell me in detail what is INPUT TAX RESTRICTED GOODS under Karnataka VAT? Thanks in advance Sanjeev |
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The Fifth schedule read with Section 11(a)(2) of KVAT Act is intended to prevent rebating of input tax paid on certain business inputs which are not for resale or for manufacture or any other process of other goods for sale.
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Generally in the VAT concept, all the purchases made in the course of business would be entitled to input rebate. In the VAT design set out by the 'Empowered Committee', certain business inputs could be restricted for input rebate.
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For example, if a dealer buys an air conditioner for use in his business premises, the input tax paid on such business input is not rebatable as per the Fifth Schedule. But if a dealer in air conditioner buys for resale he would be entitled for input tax rebate.
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