Sirs
Kindly advice regarding input tax credit eligibility on machinery spares used in the daily course of production in Spinning Mill units as few says it is eligible and few suggestes its can't. Pls suggest, am totaly confused.
Regards
Gireesh
3 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 15 June 2015
Spares for machinery are regarded as capital goods and input tax credit can be availed on the same. VAT credit on capital goods may be adjusted over a max of 36 months (but it varies from state to state).
chandra sekar
(Manager-Accounts)
(387 Points)
Replied 14 January 2016
Machinery spares to be treated as Consumable items and ITC can be claimed , under commodity code 2067, for spinning mills. It is allowed. ONly 5% ITC is allowed, and any purchase @ 14.5%, the ineligible ITC @ 9.5% has to be reversed, becz it is treated tht what the spares supplied to the manufacturer is categorised as " Industrial Input"
Recent Topics
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
Related Threads
CAclubindia
