Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Vat refund

Mahantesh (Practise ) (82 Points)

27 November 2012

Dear Sir,

We are in Service sector in Karnataka. We will not be paying Vat . But we will charges VAt for our Purchases. IS there any way we can Get refund .

Regards

Reply
Follow
Share

3 Replies

DILEEP KUMAR.A (Executive Finance) (475 Points)
Replied 27 November 2012

Originally posted by : Manjunath

Dear Sir,

We are in Service sector in Karnataka. We will not be paying Vat . But we will charges VAt for our Purchases. IS there any way we can Get refund .

Regards

Hi, please narrate your problem precisely, unable to understand.

Upgrade to CAclubindia Pro. Subscribe Now!

Mahantesh (Practise ) (82 Points)
Replied 28 November 2012

Sir we are service provider. We dont need to pay vat in karnataka. But can we claim refund Input on capital purchases.

Regards

DILEEP KUMAR.A (Executive Finance) (475 Points)
Replied 28 November 2012

HI,

As you are service based entity, you cannot claim input credit because the provision says that, to claim Input credit on capital goods, it should be related to your trade directly or indirectly ex: machinery, furniture etc. but not on computers, because you are not trading but rendering services using your computers or xerox machines such like goods. ( I presume).

Moreover you need to register under respctive state vat legislative to claim the same.

Instead you required to capitalise the entire cost of goods with vat.