Iam working in a service based company which purchases two computers (office use - capital goods) for 1,00,000/- with VAT 4000/- (4%). How can I treat this in accounts. Iam not able to claim this as input credit.
27 Replies
Chethankumar T M
(Chartered Accountant)
(89 Points)
Replied 22 December 2011
Mr.Natarajan, you have to capitalise the full value including VAT in the books of accounts
Bhanu Prakash Rao
(Think Beyond Stay Ahead...!)
(1064 Points)
Replied 22 December 2011
Hi Natarajan
Is your comapany registred under VAT?
if yes you can claim the vat paid on capital goods as input credit and adjust against the vat payable.
if no then you can capitalize it.
Natarajan
(AM)
(35 Points)
Replied 22 December 2011
Bhanu, Thanks, yes we got registered with VAT and as we a service based company, no payable is here to set-off the Input credit. And is there any provision in accounts (as per accounting standered) to capitalise the VAT input?
PREETI SUMAN
(ca final)
(94 Points)
Replied 22 December 2011
you have to capitalised only cost of computers.no need to cpitalised the input credit..
kavita rani
(article assitant. doing MBA)
(46 Points)
Replied 22 December 2011
U have to capitalise .
Shaji Balan
(Accounts in Charge)
(25 Points)
Replied 22 December 2011
Capitize all amount inclding VAT
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 23 December 2011
Capitalise full value including VAT but VAT paid on such, though it is capital goods, computers cannot be set off against any VAT out put tax payable.
rengaraj r.k
Neeraj Singh
(Executive Account)
(94 Points)
Replied 23 December 2011
you should capitalize full value of cmputers including vat . you can't claim for input credit.
Praveen Kumar
(Manager - Finance & Accounts)
(189 Points)
Replied 23 December 2011
You can't claim for input credit of computers
CA Kiran Sutrave
(CA)
(428 Points)
Replied 23 December 2011
Input Vat can be claimed on assets that can be used in the process of production. Since you are using the computer for office purpose, you cannot claim Input Vat on the purchase of computer. The Vat amount is to be added to the cost of asset.
Maniraj A
(CA FINAL & CS FINAL)
(171 Points)
Replied 23 December 2011
the defination of Input credit for Capital Goods only Plant and Machiery can take input creidt. computers not eligible for ITC.
Arif Mohammed Khan
(KNOWLEDGE SEEKER)
(146 Points)
Replied 24 December 2011
Capitalize whole value including VAT and claim Depreciation at the end....
sanjay srivastava
(Manager Accounts)
(21 Points)
Replied 24 December 2011
Capitalised full value including vat, only manufacturer has claim the input vat on capital goods No input credit taken in service based company.
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