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393 Points
Joined June 2008
Hi everybody,
I am in critial position as lakhs of amt. paid as VAT is going to be lost.
I need your help on Uttranchal Vat Act (now called Utrrakhand Vat Act) as the act doesn't explain the following: -
1. Availability of VAT Input on Electrical Installation e.g. Transformer, Power Cables, MCB, VCB, Switches & Boards for plant (a) when these items capitalized (say capital goods) (b) When these items are used for Repairing purpose.
Ans :- Capital goods means only Plant & machinery,pollution control equipment,quality control equipment,laboratory equipment . you can only take itc on above capital goods
2. Availability of VAT input on Spare Parts & Accessories and other Fabrication work( Fabrication consits MS angles, Channals, Welding Rods etc.) use in repairing of Plant & Machinery.
Ans :- You can take itc of repair on machinery for next two year in sept. each (two equel installment)
3. How to input credit be calculated when (a) about 70-80% goods manufactured sold as stock transfer to our distribution hubs in other states and remaining portion we sell it on 1% CST, however, most of our purchases consit 4% VAT. To how much extent we are eligible for VAT input (i mean to say if we are paying 4% & 12.5% vat on purchases, is Vat paid 4% eligible for input agst. stock transfer??).
Ans :- itc take as following example :-
Sale – interstate 500
Export 700
Local 200
Stock trfd. 400
Total 1800
Itc available 500
Perportion of stock trfd. 500 *400/1800 = 111
Excess of 4% = 500 – 5 = 495 itc taken
4. Vat input is available on packing material. But nobody knows to how much extent it is eligible for input credit. (e.g. if we are paying 12.5% vat on packing material, is the full amt. of 12.5% is eligible for setoff??)
Ans :- You can full set off agst.itc on packing material . in the case of stock transfer you can set off on proportion basic .
Please help me guys with this as a huge amt. of VAT is being paid by us
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