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Tarun (CA Final Student) (89 Points)
Replied 17 December 2009

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.

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Goongan (Student) (450 Points)
Replied 17 December 2009

As per Central Excise Act, CENVAT Cr. Allows on capital Goods, as per definition of capital Goods, capital Goods not include furniture purchased for office purpose. So. Company cannot claim CENVAT Cr. ………..

Suresh (Service) (91 Points)
Replied 17 December 2009

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

Ansari (ca final) (444 Points)
Replied 17 December 2009

Originally posted by : Robin Kumar Gupta
	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.

Ajay kumar (assistant) (481 Points)
Replied 18 December 2009

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.