Hi Shikha ..
Vat credit can be claimed only on those capital goods which are directly used for production / manufature. eg. Machinery.
It cannot be claimed on other capital expenditure.
Hi Shikha ..
Vat credit can be claimed only on those capital goods which are directly used for production / manufature. eg. Machinery.
It cannot be claimed on other capital expenditure.
HI, VAT credit can be availed as per the VAT Act which is applicable for credit on capital goods. You can charge depreciation on the net value (Total Value - VAT) since the VAT portion cannot be capitalised.-Suresh
| Originally posted by : Robin Kumar Gupta | ||
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One cannot not avail dual benefit of claiming VAT Credit as well as claiming depriciation on purchase value (incl vat) Hence the company cannot claim vat credit. It can claim only depriciation now. |
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THERE IS ONLY THREE VARIENT OF VAT .
1 . GROSS PRDUCT VARINET
2. INCOME VARIENT
3. CONSUMPTION VARIENT
IN INDIA INCOME VARINET IS BEING FOLLOWED . ACCORDING TO THIS ONLY CREDIT AVAILABLE IN RESPECT OF RAW MATERIAL AND COMPONENTS . AND ONLY DEPRECITAION ALLOWED IN CASE OF CAPITAL GOODS. BUT IN SOME CASE LIKE MANUFACTURING UNIT CREDIT ALSO AVAILABLE IN RESPCET OF SOME CAPITAL GOODS IN 36 INSALMENTS . THERE IS ALSO A NEGATIVE LIST IS THIS RESPECT.
THERE IS ONLY THREE VARIENT OF VAT .
1 . GROSS PRDUCT VARINET
2. INCOME VARIENT
3. CONSUMPTION VARIENT
IN INDIA INCOME VARINET IS BEING FOLLOWED . ACCORDING TO THIS ONLY CREDIT AVAILABLE IN RESPECT OF RAW MATERIAL AND COMPONENTS . AND ONLY DEPRECITAION ALLOWED IN CASE OF CAPITAL GOODS. BUT IN SOME CASE LIKE MANUFACTURING UNIT CREDIT ALSO AVAILABLE IN RESPCET OF SOME CAPITAL GOODS IN 36 INSALMENTS . THERE IS ALSO A NEGATIVE LIST INTHIS RESPECT.
company cannot claim vat credit because furniture & fixture does not fall in capital goods. so depreciation should be charged inclusive of vat amount
CAclubindia
