naina singh (student) (111 Points)
30 November 2008Greeting Members,
Please tell me can we take the VAT input credit of Assets(Plant & Machinery) purchased during the year.
Actually my client is using that input in respect of some Plant & Machinery purchased. so pls tell me and help me out.
Thanks & Regards
Naina
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 01 December 2008
You are eligible to claim input tax credit on capital assets
srinivasulu
(Accountant)
(63 Points)
Replied 01 December 2008
Hi singh,
Plant & Machinery will come under Capital goods, as per vat act capital goods input will take upto 3 years (FY) means u will take input first year only 1/3 rd and remain input take two years equally
regards
cnu
RAJU
(LEARNER)
(1089 Points)
Replied 01 December 2008
| Originally posted by :naina singh | ||
| " | Greeting Members, Please tell me can we take the VAT input credit of Assets(Plant & Machinery) purchased during the year. Actually my client is using that input in respect of some Plant & Machinery purchased. so pls tell me and help me out. Thanks & Regards Naina |
" |
Dear Naina,
Since VAT is a state subject, mentioning of State to which the query belongs, I feel, will help to answer more accurately.
As far as in Karnataka, the VAT credit for input tax paid on purchase of capital goods is allowed to be adjusted in the month in which it is purchased, provided it is used in manufacture/processing of goods for sale.
Rgds/Dharmaraju
amit
(Partner)
(31 Points)
Replied 01 December 2008
Dear, All
One of my client is in process of settingup manufacturing plant in Nasik. The client has purchased water pipeline which will be under ground from Nearby river to Plant. The water so received from river will be used for manufacturing purpose.
My query is whether the comapny will be eligible for input credit on same.
Thanks
K. Gaurish
(Government Employee)
(68 Points)
Replied 02 December 2008
Mr amit,
are you asking VAT on pipeline or VAT on water?
amit
(Partner)
(31 Points)
Replied 03 December 2008
The Company is in the process of setting up plant. the manufacturing process has not started as yer. The credit is on purchase of water pipes.
Regards
K. Gaurish
(Government Employee)
(68 Points)
Replied 04 December 2008
Dear Mr Amit,
Input Credit on purchase of water pipes has to be accumulated till the plant commences commercial production. The Tax credit can be taken in the year in which there is commencement of commercial production. So also, VAT credit is available for set off against output tax which will arise only after sale of commercial production.
I think, it is clear to you.
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