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VAT Set-off on Capital Purchase

Amit Bhatkar (Service) (457 Points)

18 June 2008

Dear All

What is the exact % available for set-off on purchase of capital asset after 01-04-2008 ? ( Under Maharashtra VAT Act )

On which capital asset set-off is available ?

Please reply

Amit

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14 Replies

Shekar (CA & LCS ) (1109 Points)
Replied 18 June 2008

Hi...

Its same as CENAVT CREDIT on Capital goods....U can take 50% credit in first year and 50% in next year...

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Amit Bhatkar (Service) (457 Points)
Replied 18 June 2008

Something is wrong.

I am asking for eligible set-off under Maharashtra VAT for capital purchase

I had read somewhere that we can claim balance % ( after deducting 4 % from tax amount ) as set-off.

Kindly clarify

Amit

(Guest)

After deducting 3% from 12.5%or 4% remaining set off is available i.s 9.5% & 1%

Amit Bhatkar (Service) (457 Points)
Replied 18 June 2008

For the F.Y. 2008-2009 shall we take balance 10.5% ( 12.5% - 2% ) or 2% ( 4% - 2% )

Because the CST rate has been reduced to 2% from June onwards.

My question is , the % which we are deducting must be similar to CST rate. Because in F.Y. 2005-2006 we are dedudting 4% , in F.Y. 2006-2007 we were deducting 3% which is equivalent to CST rate equivalent to that year.

Amit

biren thakkar (accounts manager) (231 Points)
Replied 19 June 2008

Dear Amit,

You are right on that part, but there is no amendment in the rules till now, so you continue with " Three percent". when the notification or amendment will be done than you only take changes.

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Deepak Manjrekar (salaried) (36 Points)
Replied 22 June 2008

but y we are taking cst rate as base amt vide claiming thr vat set off agst purchase of capital good.

Deepak Manjrekar (salaried) (36 Points)
Replied 22 June 2008

but y we are taking cst rate as base amt vide claiming thr vat set off agst purchase of capital good.

nav ratan sharma (proprietor) (28 Points)
Replied 20 April 2009

what are set off capital goods are purchased @ 4% set off are 1% , 3% are not allowed in set off thus 3% are increse in capital goods.

reply please.

VIKAS AGARWAL (MANAGER) (44 Points)
Replied 04 March 2010

23 Jan 2010 ... After deducting 3% from 12.5%or 4% remaining set off is available i.s 9.5% & 1% ... but y we are taking cst rate as base amt vide claiming thr vat set off ...

Rajendra Purohit (Manager Accounts & Adm.) (22 Points)
Replied 31 January 2011

Dear All,

What is the set off % avaliable on Purchase of Computer in Maharashtra

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Rajendra Purohit (Manager Accounts & Adm.) (22 Points)
Replied 31 January 2011

Dear All,

What is the set off % avaliable on Purchase of Computer Capital goods in Maharashtra

Mahendra tiwari (SR EXE ACCOUNT) (22 Points)
Replied 07 July 2011

Originally posted by : Amit
	For the F.Y. 2008-2009 shall we take balance 10.5% ( 12.5% - 2% ) or 2% ( 4% - 2% ) Because the CST rate has been reduced to 2% from June onwards. My question is , the % which we are deducting must be similar to CST rate. Because in F.Y. 2005-2006 we are dedudting 4% , in F.Y. 2006-2007 we were deducting 3% which is equivalent to CST rate equivalent to that year. Amit

Dear Amit

I thing your are merging here the concept of form F related vat setoff. In that case whatever you have written is simmilar to that.

FORM F for branch stock transfer..

Mahendra tiwari (SR EXE ACCOUNT) (22 Points)
Replied 07 July 2011

I thing amit mixing the concept of vat set off of FORM F because in such condition there is 2% of retention.

some what this is similar to as he was talking .

Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 06 October 2011

MAHARASHTRA
Nature of goods	What Amount of Set-off Eligible on Local Purchases	What Amount of Set-off NOT Eligible on Local Purchases	Interstate Purchase	Remarks
Fuel -	Nil	Nil	No Set off
Raw Material	Net of 2%	2%	No Set off	Where goods are 5% then eligibility would be 3% & where goods are 12.5% then eligibility would be 10.5%
Plant & Machinery	12.50%	NA	No Set off	Full set off on Plant & Machinery
Furniture & Fixture	10.50%	2.00%	No Set off
Electrical installation	12.50%	NA	No Set off	If forming addition to Land & Building no set off is eligible
Office Equipment	10.50%	2.00%	No Set off	Printers / Computers eligible for set off
Home Furnishing and any other goods for Use by Employees	Nil Even if capitalised	Nil	No Set off	Even if this is debited to P & L still set off is not eligible as meant for self consumption
Mobile Phones	10.50%	2.00%	No Set off
All purchases debited to P &L [ Except goods meant for consumption by employees]	Net of 2%	2%	No Set off	Where goods are 5% then eligibility would be 3% & where goods are 12.5% then eligibility would be 10.5%