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MVAT CREDIT ON SALE OF DEPB

Vikas.sanas (CA Job) (32 Points)

10 May 2007

Maharashtra VAT

If dealer is engaged in trading of exempted goods. He also exports these goods. On exports he is entitle to get DEPB credit. If he sales this DEPB then there is liability of VAT.

Can he get set off of input vat credit of P & L items against this liability e.g. VAT paid on printing & stationery expenses?

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4 Replies

Amit Shah (84 Points)
Replied 10 May 2007

please explain DEPB

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subhash parikh (service) (22 Points)
Replied 06 December 2008

Hi, I am also involved in vat issues for DEPB. See the credit can be claimed but i have heard that no credit is available, if the goods cleared under customs are sold out of maharashtra. not very sure ok but something like this. If you get the details pls mail me at subhashparikh @ gmail.com

ganesh bhandari (B.Com Final C.A. Final CS Article Clerk ) (239 Points)
Replied 14 September 2009

what is DEPB

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14487 Points)
Replied 10 March 2010

At the same time, denial of input tax credit on DEPB is also against the spirit of Value Added Tax. When DEPB has been determined to be goods by the judicial pronouncements, it remains to be now determined whether user of these goods will be treated as final consumer of these or will these be related to the goods purchased with it ie in case goods meant to be used in manufacture are purchased by it, the input credit should be allowed and in case goods meant for consumption are purchased, input tax credit should be denied.