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please answer the quiery ?????????????????

RAHUL KUMAR TAANK (CS PURSUING ) (672 Points)

02 November 2010

DEAR ALL,

Can input tax credit be availed on use of petroleum products??????

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14 Replies

CA Trinath Galla (student) (3130 Points)
Replied 02 November 2010

no...........specifically excluded.

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CA. Megha Topiwala (Job) (1534 Points)
Replied 02 November 2010

no.... it is specificallly excluded....

RAMA KRISHNA (Sr.Executive - Accts & Preparing for IPCC) (670 Points)
Replied 02 November 2010

No, It is come under neigitive list so u can't avail input credit.

1 Like

Narayanan (Chartered Accountant) (189 Points)
Replied 02 November 2010

I dare not say "petroleum products"... the exclusion is only for high speed diesel, light diesel and petrol...

So in case of products like Kerosene, etc., which are petroleum products, but used as fuel, i reckon CENVAT is allowed...

Similarly, grease, lubricating oil, etc. are equally petroleum products, but are allowed...

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 02 November 2010

No Specially Excluded

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CA. Nitin Panchal (Self Employed) (43 Points)
Replied 03 November 2010

Narayan is absolutely correct....

Dharmendra Singh (CA Student ( Final)) (25 Points)
Replied 03 November 2010

No, It is come under neigitive list .

C.A. LINESH PATIL (CA) (910 Points)
Replied 03 November 2010

agree with narayan

Bhavin Bhadra (Job) (174 Points)
Replied 03 November 2010

Dear Narayanan,

Rahul is asking for input tax credit (ITC) which means credit of VAT paid on local purchases and not about CENVAT.

Petrol, Diesel, Lottery tickets, Liqur etc., have been specifically kept out of VAT region. So, ITC not available on theses products.

Thanks

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Narayanan (Chartered Accountant) (189 Points)
Replied 03 November 2010

Oh is it... wrong interpretation on my part... anyways the answer still does nt change... even for VAT it only exempts petrol, diesel and Aviation fuel... so other petroleum products still win the war

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Anand (Chartered Accountant) (166 Points)
Replied 03 November 2010

No its excluded.

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 04 November 2010

No. Tax on petroleum products cannot be availed as input credit. The input tax credit on petroleum products is covered by Schedule E as per example of (Delhi Vat).

It provides that in the following circumstances the input tax credit on Petroleum products and natural gas be taken as NIL.

(A) When used as fuel

(B) When exported out of state

The second condition is more appropriate for trader dealers. In case they decide to stock transfer petroleum products out of state without sale, input tax on these products, if already availed on these products will have to be considered NIL.

R. verma

(Guest)

I.T.C. is not available

Ravi Prasad (Self employed) (148 Points)
Replied 08 November 2010

First clarify what petroleum products you are talking about. If it is vatable, i.e. VAT is levied on the same, as in the case of Bitumen, Lubricants etc., then for what purpose it is used - If it is used as fuel in moto vehicles - no input tax rebate, but if is used in captive power generation or in the manufacture of other taxable goods, then partial rebate is available.