Vat

Jatinder Chugh (Querist) 15 September 2010 This query is : Resolved
I am a Regd dealer under Punjab vat Act and have purchased a capital asset on which 12.5% vat has been charged. Now my query is whether I can claim ITC on capital items @ 12.5% or at the rate of 4%.

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R.Ramachandran (Expert) 16 September 2010
Dear Mr. Jatinder,
You will be able to take Input Tax credit of the entire tax paid on the purchase of Capital Goods.

AMIT BAJAJ ADVOCATE (Expert) 16 September 2010
Input tax credit on capital goods is allowable to the extent of 5.5% only. since capital goods are schedule B item under Punjab VAT Act 2005