Sorabh Gupta (Manager ( Taxation )) (877 Points)
17 April 2009Dear All Members
Can any one tell me that is there any definition of INPUT in VAT act ???? If yes then please give any reference or section or whatever you think suitable.
And one another question , take a example that a plant is under commissioning now or it doesn'e started the production yet then whether all the VAT cerdit taken as a CAPITAL GOODS OR INPUT OR something else. ??????????
Raman
(Artilcle Assistant )
(57 Points)
Replied 02 May 2009
Hello mr Sorabh,
As the definition of Input tax is Given under Section - 2 Subsection (1) clause (r) of Delhi VAT act 2004, as far as ur secong qurey is concerned whether project work is completed or not,
production on a particular project is started or not u can take Input Credit on the tax paid on the purchase of the goods in the same tax period in which u are purchasing the goods ,
Thanks & Regards
Raman Gora
R B Banwat
(tax consultant)
(154 Points)
Replied 02 May 2009
1. Which State?
2. Under VAT you can claim the Input Tax Credit of taxes paid on purchases subject to Negative List and Restrictions under Local VAT Tax laws. There is no need that Goods must be consumed or sold - for entitlement of Input Tax Credit. Do remember that under VAT lawas there is now no distinction as Manufacturer,Reseller etc, so question of such things dont arise at all.
3. In some State VAT Laws , there is do mention of " Corrosponding Purchases " for Inout Tax Credit., but they are generally regarding other goods than Capital Goods.
Thats all for the present
Sachin
(Chartered Accountant)
(419 Points)
Replied 02 May 2009
Dear Sorabh,
VAT is State and definition of the Input VAT and VAT on Capital goods change state to state. please write me what is your problem in VAT and in which regard sothat i can help you my email id is sachinagarwalcallb @ gamil.com
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