chirag tanna (Article Clerk) (96 Points)
15 December 2008We have an audit of a Pharma Company which deals in Bulk Drugs manufacturing.
I have a Query relating Vat setoff on chemicals used in Laboratory for testing Raw-Materials before issue to Plant and Production.Can we avail VAT setoff on such chemicals Exp? (My Question is in context with GVAT).
Swaminathan
(Chartered Accountant)
(84 Points)
Replied 16 December 2008
In case of Manufacturing Industry, Laboratory is a part of manufacturing process. So we can avail the input vat on materials used in Laboratory.
navneet gupta
(student article assistent)
(53 Points)
Replied 16 December 2008
yes dear, we can set off input vat on rawmaterial in manufacturing concerns.
MAYUR JOSHI
(Chartered Accountant )
(125 Points)
Replied 18 December 2008
Yes, one can take Input Vat Credit on purchase of Material Used for testing before manufacturing purpose.
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