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vat credit

GOPALAKRISHNA.V (SR. ACCOUNTS OFFICER) (28 Points)

19 September 2009

Dear sir,

We are manufacturer of Industrial gers and ger boxes. We are instaling one machinery in our factory. We have to do electrification for this machine. The electrification work has entersted to one electrical contractor. He is charging VAT on supplies he made. Can we avail VAT credit on the electrical items which is used for errection of machinery.

Kindly confirm.

Regards,

Gopal

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5 Replies

GOPALAKRISHNA.V (SR. ACCOUNTS OFFICER) (28 Points)
Replied 19 September 2009

Originally posted by :GOPALAKRISHNA.V
"	Dear sir, We are manufacturer of Industrial gers and ger boxes. We are instaling one machinery in our factory. We have to do electrification for this machine. The electrification work has entersted to one electrical contractor. He is charging VAT on supplies he made. Can we avail VAT credit on the electrical items which is used for errection of machinery. Kindly confirm. Regards, Gopal	"

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Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 19 September 2009

No. its not allowed. as we aslo discuss with STO on 18.9.2009. he told me there is restruction on Electrical installation & fitting itms.input vat not allowed.

saurabh singhal (Accountant) (27 Points)
Replied 25 September 2009

Dear Sir ,

I am a student and I want to know about the VAT adjustment and forms to be fill up please help me

amit jain (Chartered Accountant) (532 Points)
Replied 28 September 2009

no credit for electrification will be available as per vat credit rules on capital goods

Ashok (Accountat) (22 Points)
Replied 21 November 2009

Originally posted by :GOPALAKRISHNA.V
"	Dear sir, We are manufacturer of Industrial gers and ger boxes. We are instaling one machinery in our factory. We have to do electrification for this machine. The electrification work has entersted to one electrical contractor. He is charging VAT on supplies he made. Can we avail VAT credit on the electrical items which is used for errection of machinery. Kindly confirm. Regards, Gopal	"