MCC Rocks (Articled Assistant) (34 Points)
22 December 2008Whether input tax credit can be taken for packing material purchased. A company sells its old sacks & purchases new sacks from a same sack dealer. It pays VAT on purchase & collect & pay VAT output tax on its sales but it does not take input of the VAT amount paid on purchase. Can it claim input credit???
Note: The company's final product is not subject to VAT as it is an agricultural commodity.
Swaminathan
(Chartered Accountant)
(84 Points)
Replied 22 December 2008
As the finished goods are exempted as per VAT, the company is not entitled to claim input tax on packing material.
Abhilash.T
(Article Assistant)
(61 Points)
Replied 24 December 2008
Hi Ravi,
you can input credit on purchases of sacks made by you.
P.L.PRASAD
(SERVICE)
(94 Points)
Replied 24 December 2008
Hai everybody,
Please help me in the following matters. I want to learn from basic in the area of
1. Incometax
2. Service tax,
3.VAT.
4. Excise Duty
5.CENVAT
6. CUSTOMS
I need the practical approach. please help me inthis regard. anybody have the material in concern to above please forward to myn mail ID. also I request all of you please suggest me how I can get good knowledge in the above matter.
Ameet
(L)
(1678 Points)
Replied 26 December 2008
the principle says that If the final product is liable for VAT in that case the credit in respect of input the assesse can take.
But did not understood as you said that assesse pays VAT on output & other side said that final product is not liable for VAT
CAclubindia
