What are the conditions to avail Credit of Input Vat on Capital Goods under Karnataka VAT Act 2003?
7 Replies
SAMEER
(CHARTERED ACCOUNTANT)
(304 Points)
Replied 15 September 2007
Deduction of input tax in respect of Capital
goods.-
(1) Deduction of input tax shall be allowed to the
registered dealer in respect of the purchase of capital goods
for use in the business of sale of any goods in the course of
export out of the territory of India and in the case of any other
dealer in respect of the purchase of capital goods wholly or
partly for use in the business of taxable goods.
(2) Deduction of input tax under this Section shall be
allowed only after commencement of commercial production,
or sale of taxable goods or sale of any goods in the course of
export out of the territory of the India by the registered dealer
and shall be apportioned over a specified period, as may be
prescribed.
‘Capital goods’ means plant, including cold storage
and similar plant, machinery, goods vehicles, equipments,
moulds, tools and jigs whose total cost is not less than an
amount to be notified by the Government or the Commissioner,
and used in the course of business other than for sale.
Srinivas Sharma KN
(Tax Consultant)
(292 Points)
Replied 11 February 2008
CA Sameet correctly stated the provisions. However this should be read with Rule 133 and Form VAT 170 and 175 are necessary to claim the credit.
Vijay K. Agrawal
(Service)
(608 Points)
Replied 13 February 2008
Pl refer schedule 5 and restricted items on which you will not get input tax credit on capital goods.
(Guest)
| Originally posted by :Shashanka M J | ||
| " | What is the compossition tax how i can prepare vat 100 |
" |
(Guest)
| Originally posted by :Guest | ||
| " | What are the conditions to avail Credit of Input Vat on Capital Goods under Karnataka VAT Act 2003? |
" |
Recent Topics
- RCM payment Due Date
- 2B ITC reconciliation
- Rent received NRI in lieu displacement due to rede
- Restrictions in ITC
- 27Q Confirmation Notice from IT Department
- GST Registration CANCELLATION a
- Returns date of filling gstr1 3b
- GST Portal is Live Now
- ITR for Stamp Duty and Registration Charges for Tr
- RCM on Rent Paid by Composition Dealers
Related Threads
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert14 February 2025 -
Survey, Search and Seizure under Income Tax Act 1961
CA Hari Agarwal
CAclubindia
