INTERVIEW QUESTIONS TAX VALUE ADDED TAX DETAILS

Question: How the Input Tax Credit-has to be claimed and availed for Capital Goods?

Answer: Every registered dealer while submitting monthly returns to the assessing authority/can claim the Input Tax Credit paid for all local purchases made from registered dealers on the basis of Original Tax Invoices in those returns itself for Capital Goods, after the commencement of commercial production.

They can deduct the same from the Output tax, if any, payable on the local sales or inter-State sales in those monthly returns. In the first year of commencement of commercial production, 50% of the input tax credit not exceeding 50% can be availed and the rest in the second or third year. But fees condition is not applicable to parts and accessories. At the end of the third year, any credit not availed will be lapsed to Government.

Every registered dealer while submitting monthly returns to the assessing authority/can claim the Input Tax Credit paid for all local purchases made from registered dealers on the basis of Original Tax Invoices in those returns itself for Capital Goods, after the commencement of commercial production.

They can deduct the same from the Output tax, if any, payable on the local sales or inter-State sales in those monthly returns. In the first year of commencement of commercial production, 50% of the input tax credit not exceeding 50% can be availed and the rest in the second or third year. But fees condition is not applicable to parts and accessories. At the end of the third year, any credit not availed will be lapsed to Government. Source: CoolInterview.com

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