Frnds,
In a manufacturing concern the VAT paid on indirect expenses like stationery purchase or elecrical maintainance etc can be claimed as input credit?
11 Replies
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 12 May 2010
can claim on electric equipment,
but not in stationery as it is not elgilble for vat credit
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 12 May 2010
apart from stationery following items are also not eligilble for vat input credit,
2nd hand goods,
petroleum item
office furniture including air condition etc...so if u r using electric item for office then it will also not elgible for vat credit......if electric item used for factory then only elgible for vat credit.....
vikash rathi
(Chartered Accountant)
(787 Points)
Replied 12 May 2010
i think u r doubt is totally solved......one more thing this all is given in our state vat act (chattisgarh) for u r state it may change ...but i think there will not be drasstic change in ur state ...as all state have near by same law....
CA. Sukhdev Singh
(C.A.)
(111 Points)
Replied 12 May 2010
Depends on state vat laws, but normally vat on indirect exp. is not allowable.
public8771
(DGM - Finance & Accounts)
(21 Points)
Replied 12 May 2010
Sir,
Vat on DEPB License can be availed as input tax credit by the purchaser in gujarat? If so, then please provide copy of notification or circular or inform us under which saction it is allowable?
Thanks
Jignesh Raval
Crystal Quinone Pvt. Ltd. - Ahmedabad
Devinder Jain
(Tax Practioner)
(914 Points)
Replied 12 May 2010
If the equipment being maintained can be co-related to the manufacturing activity, one can claim input credit their on. And if otherwise, the maintainance of the equipment results into increase in value of the equipment being maintained and it could be classified as capital expenditure, the input tax credit can be claim as allowable on capital goods.
Devinder Jain
Nitin Grover
(CS)
(1228 Points)
Replied 12 May 2010
Dear Friends
Input of VAT can be claimed in two things
1.) On each and every goods which used for Re sale
2.) Every another goods/thing which used in Manufacturing like Machinery
suppose if u purchase AC and CAR and pay VAT but your business is of Furniture related
then u cant claim of AC and CAR or any thing which not relates with Business
SO u can not claim in your query
Regards
pragadeeshkanna
(searching)
(281 Points)
Replied 13 May 2010
Thanks all for clarifying. now i m quite clear.
samsad siddiqui
(ASST MANAGER ACCOUNTS)
(71 Points)
Replied 13 May 2010
Vat Input Credit taken if the following steps are complited:
1) Goods are used in or in relation of producing final goods
Hence the question taking credit on vat paid on purchases of stationery item is not avalable for taking Vat Credit
arun mittal
(student)
(40 Points)
Replied 23 July 2011
HI
CAN ANYONE TELL ME ABOUT THE AVAILABILITY OF VAT INPUT CREDIT OF SPECIAL ADDITIONAL TAX (SAT) IN UP VAT.............
ARUN MITTAL
ARNMTTL17 @ YAHOO.CO.IN
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 12 December 2011
i agree with mr nitin grover. Under VAT you cannot claim all the inputs for ITC. Only resale, manufacture, process etc is considered for ITC.
The inputs should be in relation to the business transaction.
rengaraj r.k
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