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Vat on capital goods

Suvendu Laha (CA SERVICE AT TULSYAN GROUP OF INDUSTRIES) (106 Points)

29 November 2008

Dear All,

Plz inform me what is the rule of WBVAT regading capital goods purchased?

and also inform wheather input vat credit is available in case goods purchase in credit in a month and payment is not made yet ?

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9 Replies

CA MOHIT VAATS (Consultant) (554 Points)
Replied 29 November 2008

Mr. Davender,

You must apolozise on your words, you can't underestimate a person capibilites & also if you don't have patience & if you can't satisfied the person in need..

I suggest you to leave the field of CA Club.

Regards,

CA MOHIIT VAATS

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KETAN N. SATHAWARA (STUDY) (40 Points)
Replied 30 November 2008

Originally posted by :Suvendu Laha
"	Dear All, Plz inform me what is the rule of WBVAT regading capital goods purchased? and also inform wheather input vat credit is available in case goods purchase in credit in a month and payment is not made yet ?	"

K. Gaurish (Government Employee) (68 Points)
Replied 02 December 2008

Well Mr Suvendu,

U would be eligible for the input tax credit on capital goods purchased.

The said input tax credit would be available in 2 equal installments.

Well, payment on purchase is not the criteria for availing the input tax credit. The main criteria is that the ITC can be calimed in the year in which the capital assets are put to use.

Vijay K. Agrawal (Service) (608 Points)
Replied 03 December 2008

AS PER CHAPTER III , CLUASE 22(4) OF WEST BENGAL ACT YOU ARE ELIGIBLE FOR INPUT TAX ON CAPITAL GOODS PROVIDED YOU ARE USING FOR BUSINESS PURPOSE AS UNDER.

IF PURCJHSE PRICE IN LESS THAN RS. 1 CRORES- IN ONE MONTH

IF PURCJHSE PRICE IS RS. 1 CRORES AND MORE - 4 HALF YEARLY INSTALLMENT

RELATED RULE IS 19 UNDER CHAPTER V.

PAYMENT HAS NO BEARING ON AVAILABILITY OF ITC.

HOPE YOUR QUESTIONS ARE ANSW.

Mukesh Khandelwal (Prop.) (26 Points)
Replied 30 June 2011

i want to understand whether sale of capital goods under Rajasthan vat is liable to tax or not?
eg: I have sold motor Vehicle. the said motor vehicle had been purchase in retail invoice on 30.3.2007 and taken in our balance sheet as fixed assets and we regularly claim depreciation on the said assets. I have not taken any input tax credit at the time of purchase. Today i want to sale the said vehicle. Let me know whether we have to pay vat or not? pl clear the provisions of law

Thanks

Mukesh Khandelwal

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