Vat Input credit on Fixed Assets - Professionals - GST - TIK Share
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Vat Input credit on Fixed Assets


Ashish Dhammurkar

2015-05-19

Dear Experts,

 

I m holding Partnership firm business and i am purchased Computer & Printer for office use. So, I booked this bill in Fixed Assets. Please let me know, can i get full VAT credit for this asset Purchase?  Awaiting for your valuable reply...

Rahul Rai

2015-05-19

You can take Input credit on purchse of Capital Goods. As per Section 2(17) of Karnataka Vat Act, Capital goods means machinary, plants...... used in the business other than for sale.

Computer and printers are not used for the purpose of sale and hence input is not available. You cannot take input credit on purchase of Computers and printers unless your business is of printing or xerox.

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S.M Navale

2015-05-20

Sir, if the business is of printing or xerox, the business is of service centre. There will be no output vat.  What is the use of taking input credit sir?

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Ashish Dhammurkar

2015-05-20

Rahul Sir,

I am holding Partnership firm of IT solution business. Is that eligible for setoff?

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Rahul Rai

2015-05-20

If VAT is applicable on softwares you sell which are coded using the computer you purchase then input is available otherwise you cannot take VAT input.

@Navale, on Xerox shops VAT is applicable since they sell Papers. Photocopies are done on papers and vat is applicable on that.

@Ashish, just test yourself whether computer forms part as a machine used for production of goods on which you collect VAT from your customers. If answer is No, then you cannot take input VAT credit.

 

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S.M Navale

2015-05-20

 sir, Thank you.     even I also got confused whether to take input cr. or not on assets, now it is clear.

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