Friends,
Whether VAT input credit can be availed and utilised in the following scenario ?
1 The company's Finished Product is exempted from VAT.
2 It pays VAT at the time of purchasing Raw Materials etc.
3 Scrap is generated during manufacture of Finished Product and the same is sold. VAT is collected and paid during such sales.
4 Can the company avail input credit on purchase of Raw Materials etc. and then utilise the same against VAT liability arising on account of sale of scrap?
5 Is there any provision for claiming input refund of VAT paid on purchase of inputs(ie Raw Materials etc.). 
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VAT input credit
Replies (1)
Yes.
You can claim Input Credit subject to reduction of 2% of Purchase Price means if 4% is the input vat rate (4-2=2%) and 10.50% can be claimed accordingly.
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