Suppose I purchase a machinery(i.e capital goods) for my factory.If the price of the capital goods is below Rs 1 crore then the VAT paid on purchase can be adjusted in 24 equal monthly instalments and if the price of the capital goods is above Rs 1 crore then the VAT paid can be adjusted in 4 equal half yearly instalments in West Bengal?
2 Replies
Manoj Mehta
(Head Of Department (Accounts & Finance))
(1479 Points)
Replied 15 March 2014
Dear roy it depend on state vat laws. You have to study your state vat and take actions on the same for eg. In Delhi vat it is taken in three year and in Maharashtra in one year itself. Regards
MJ Krishnamurthy
(ACCT(Retd))
(7197 Points)
Replied 16 March 2014
Dear Roy,
All the vat paid on a purchase of a capital goods can be claimed in one instalment, irrespective of its value,subject to the conditions laid under rule 19 of WBVAT Rules.If it becomes excess to the output payable in that month, it can be carried forward to the succeeding months....mjk
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