Hi
The query is reagarding Input tax credit for VAT on capital goods. While calculating VAT payable, our CA has considered only 1 % out of 4% VAT on capital goods for input tax credit. and bal. 3% is transfered to respective assets a/c. Is there such limit for input tax credit for capital goods.
NORMALLY INPUT TAX CREDIT ON CAPITAL GOODS CAN BE TAKEN ONLY UP TO 50%.AND BALANCE 50% SHOULD BE CARRIED FORWARD TO NEXT YEAR.
Hi Snehashree ..did u mean that we can get 100% credit but 50% in first year n 50% in next year..Also tell me the entries which I have mentioned in the query are wrong ?
| Originally posted by :Amita S. Gokhale | ||
| " | Hi The query is reagarding Input tax credit for VAT on capital goods. While calculating VAT payable, our CA has considered only 1 % out of 4% VAT on capital goods for input tax credit. and bal. 3% is transfered to respective assets a/c. Is there such limit for input tax credit for capital goods. |
" |
kindly go through your ca opinion. 50% rule apply in excise input only not for VAT
HI AMITA
IAM SAYING ABOUT TN VAT. ACCORDING TO TNVAT ACT, INPUT TAX CREDIT ON CAPITAL GOODS CAN BE CLAIMED UP TO 50% IN THE FIRST YEAR AND BALANCE AMOUNT IN THE SUCCEDDING YEAR. IF YOU BELONGS TO SOME OTHER STATE PLEASE REFER CORRESPONDING VAT ACT.
Hi
as per MVAT Act u will get 100% set off in case of machinery.
Other than machinery u will get set off after 2% reduction.
Eg if funniture VAT 12.5% then u will get only 10.5%.
In case of car, No set off available.
Hi Snehasree
Thanx. We are from Maharashtra.
Hi aniket
thanx for info. let me know what is the set off limit for computers and tools as well.
Hi Amita,
If computer and tools both r using for manufacturing purpose then u will get 100% set off.
if both r using for other than manufacturing like office use then u will get set off after 2% reduction.
EG computers in office
Rs 1000 + 40(VAT 4%)= 1040/-
then set off available in MVAT Rs. 20/- only
If tools in Factory
then 1000 + 123 (VAT 12.5%)= 1123/-
then set off availabel In MVAT RS 113/-
But dont charged depreciation on Rs 40/- on computers and RS 113/- on Tools
Charged Depreciation on RS 1000/- on both
Not on Rs 1040/-on Computers and 1123/- on Tools
Correction in above statement
Set off available as MVAT on on Tools Rs 123/- (Full set off)
But all my statement as per MVAT ACT 2002
| Originally posted by : aniket | ||
 |
Hi as per MVAT Act u will get 100% set off in case of machinery. Other than machinery u will get set off after 2% reduction. Eg if funniture VAT 12.5% then u will get only 10.5%. In case of car, No set off available. |
 |
Can you kindly guide me through the rule/section under MVAT Act where this is mentioned.
Is there any specific table which can inform me about the computation of input tax credit on capital goods?
HI EVERYONE
PLEASE TELL ME CAN I TAKE THE ALL VAT CREDIT BENEFIT FOR THE ONE FY.
As per rule 53 of MVAT Act
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