Wednesday, June 22, 2011

Can we claim input tax credit on all purchase?

 No, you cannot claim  intpu tax credit on all purchases.

You will be eligible input tax credit on goods purchased from VAT registered dealers in the state and input tax credit will be eligible goods purchased for resale, raw material and packing materials for use in the manufacture of goods and even capital goods.

You will not be eligible input tax credit on Inter Stte (CST Purchase) purchases.

And also the following items you cannot claim a input tax credit.

Goods purchased for Personal Consumption or gifts purpose.
Petroleum products unless one is dealing in petroleum
Air-conditioning units unless you are in the business of dealing in such units".
Spare parts for repair and maintenance of automobiles unless your business is dealing in such automobiles;
Autombiles, including commercial vehicle, unless you are in the business of dealing in such automobiles.



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