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Purchase of spare parts: maharashtra vat implications

yashsr (CA) (2285 Points)

11 May 2012

I purchase spare parts, tools etc. from local(Maharshtra) on which I pay VAT. These ofcourse are not my goods..Now can I claim set-off of the same from my Sales? And am I required to show the same in my 6 monthly VAT returns?

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3 Replies

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 11 May 2012

Mr Yashsr,

If you are buying spare parts and tools for resale only input tax credit can be claimed.Otherwise,they should be spare parts of notified capital goods on purchase of which input tax credit is avilable. What do you mean by stating that they are your goods and you are purchasing them?

MJK

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yashsr (CA) (2285 Points)
Replied 12 May 2012

Originally posted by : MJ Krishnamurthy
	What do you mean by stating that they are your goods and you are purchasing them?

I'm sorry I'm a little confused.

They're not my goods, I'm purchasing spare parts/tools/accessories which aid in the production of my goods. These spare parts/tools/accessories are obviously not for resale. They're used in production. Are they supposed to be shown in VAT returns? If yes, which head? And can I claim set-off(i.e. input credit) on these from my Sales VAT?

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 12 May 2012

Mr Yashsr,

If they are the parts of machineries declared as capital goods only(in your state by a notification) you can claim the input tax credit of those purchases,otherwise not.

MJK