VAT INPUT CREDIT
MANOJ MANGAL
(Querist) 16 November 2010
This query is : Resolved
IN CASE OF AMC OF PRINTERS CONTRACT WITH M/S XYZ LTD OF HYDERADED, A.P.,IN PURCHASE ORDER (PO)IT IS MENTIONED THAT COMPREHENSIVE AMC OF PRINTER (INCLUSIVE OF SPARES & CONSUMABLES),HE WILL CHARGED 0.25/- PER COPIES i.e. THE BASIC PRICE IN ADDITION TO THIS, IT WILL CHARGES VAT @4% EXTRA AS WELL AS SERVICE TAX @10.3% ON ABOVE. SUPPLIER i.e. M/S XYZ IS RAISING THE INVOICE (HAVING TIN nO. & SERVICE TAX REG. NO.) WITH BASIC PRICE, VAT & SERVICE TAX. I HAVE PAID THE TOTAL AMOUNT OF INVOICE.
CAN I CLAIM THIS VAT INPUT AMOUNT AT THE TIME OF PMT. OF VAT OUTPUT TAX.. WHAT IS THE PROVISION FOR CLAIMING THE VAT INPUT ? PL. EXPLAIN IN DETAIL...
R.Ramachandran
(Expert) 16 November 2010
Please indicate whether you are also located in Andhra Pradesh.
Please also indicate what is that you get printed through the Printers on AMC.
Are you selling the printed items to your customers charging VAT?
soumitra basu
(Expert) 16 November 2010
Yes, you can always claim input credit.
MANOJ MANGAL
(Querist) 16 November 2010
Mr. R. Ramachandran, yes sir i m also located in andhra pradesh only. printer is being used for printing of design, contract copy some layouts & general office purpose also. i m not selling the printer it is not the business.. pl. give the reply as soon as possible
R.Ramachandran
(Expert) 16 November 2010
Dear Mr. Manoj,
Please indicate clearly as to what is your business - and how do you use the printer outputs? Whether all the printer outputs are use in any manufacturing activity - and after such manufacturing are you selling those things etc. etc. Without indicating the full particulars it will not be possible to give any useful view.
MANOJ MANGAL
(Querist) 18 November 2010
dear sir,
my business is manufacturing & selling the defence related products.
this is the large network printer, is being used for multipurpose such as printing the contract copies,project related designs,layouts & general administrative purpose etc.. this is only a supportive activity of my business & it is not also a manufacturing activity at all...
am i m not selling even single printing output to customers, it is not the business.
R.Ramachandran
(Expert) 18 November 2010
If the printing output is of any input in manufacturing and selling of the defence related products then AND ONLY then and that too only to the extent of such usage the INPUT VAT Credit can be taken. Proper Accounts has to be maintained for this since the State VAT Authorities would be insisting on this.
