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VAT Credit on good taken to another state

Harsh Murarka (Articleship) (30 Points)

27 December 2008

Whether VAT credit is available on goods taken to bombay however supplier who sold good is also in ahmedabad as well as bill issued to H.O address(in ahmedabad only) but good are sent to bombay site where pipeline project is going on and if VAT credit is avaliable than of which state is available.

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Kshitij (PCC Student) (125 Points)
Replied 24 January 2009

In this case the bill has been issued in name of buyer's Ahmedabad Head Office. So VAT credit would be taken within Ahmedabad only.

As in the eyes of law the person or a company or an entity in whose name bill has been issued is considered, not the ultimate place to where the goods have been taken is considered. As when if authorities cross check whether the credit is taken against an eligible purchase, they will see & consider the purchase bill and the entity on whose name it has been issued. They would not like to physically themselves go and check where the goods have been consumed whether in Bombay or in Ahmedabad. So, that's why only the destination of the buyer printed on the bill, will make him eligible to take VAT credit in that state only.