VAT Input

MCC Rocks (Articled Assistant) (34 Points)

22 December 2008  

Whether 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.