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VAT credit on LPG Gas

Venkata Ramana Sriram (Service) (119 Points)

20 May 2011

Dear All,

Please let me know whether LPG gas used to cut the plates (Input ) can be eligible to avail the input credit?

Whether the LPG gas can be considered as input or not ?

Regards,

S.V.Ramana

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7 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 20 May 2011

No, the same is not eligible for "INPUT TAX" as you are not trading the LPG GAS you are using the same just as for cutting the plates and the same should be under consumable stores/expenses.

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Mahabaleshwara Rao (director) (197 Points)
Replied 22 May 2011

While asking question about VAT first mention the state.

Under karnataka VAT Act, input credit on LPG is available to the extent VAT paid in excess of 2% as per SEc. 11 read with Sec. 14 of the Act.

Dheerendra (Finance Incharge) (122 Points)
Replied 09 August 2011

if u r a manufacturer in karnataka and u r using it for other than canteen u can avail input credit as shown below

RS. -1000 (NET AMOUNT)

VAT 14%-114

TOTAL -1114

INPUT

14% 114

5% 50
RESTRICTED 64

barkat ali (auditors) (32 Points)
Replied 15 August 2011

what is the input to be taken on LPG (commercial gas) for 5stars hotels in karnataka, as per last year input to be taken was 8.5%,now after VAt changed to 14% the input to be taken as 10%?? or not