Dear All,
We are a Manufacturing Company and the manufactured item is exempted from VAT. We have paid VAT on Purchase of Capital Goods. Can we claim VAT Refund?
If so, please share the relevant extract of act / rule / notification / others.
Regards,
4 Replies
Pankaj Arora
(Learner)
(3134 Points)
Replied 08 April 2011
You can take input credit of capital goods but you can not input credit or purchase which you used in manufacturing final product which is exempt.
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 08 April 2011
if all the products manufactured by company are exempt then NO input tax credit nor any refund.
Arun Agarwal
(GM (Finance))
(29 Points)
Replied 19 April 2011
If final product is exempt from VAT then Input credit will not be applicable, agree for the Non-Capital goods. But if the same is applicable for VAT paid on Purchase of CAPITAL GOODS as well??
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 20 April 2011
the concept of vat is to set off the input credit against vat liability, no cash refund.
however you can search your return form you are using, and try to claim the input credit in balance, there is no harm to claim,
as you are not entitled to claim, but if during assessment process it get allowed then u can keep it
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