Vat Input credit

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Frnds,

In a manufacturing concern the VAT paid on indirect expenses like stationery purchase or elecrical maintainance etc can be claimed as input credit?


 

Replies (11)
can claim on electric equipment, but not in stationery as it is not elgilble for vat credit
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.....
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....

Depends on state vat laws, but normally vat on indirect exp. is not allowable.

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

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

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

Thanks all for clarifying. now i m quite clear.

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

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

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


CCI Pro

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