Is there any case laws with regard to inputvat credit on purchases on fertlisers used in growing coffee and
tea plantations? ours is a company which own coffee estates and grows coffee & tea on our estates. we are registered dealer under karnataka vat .
Dwarakanath
Company Challenges Denial of Input VAT Credit for Fertilizers Under Karnataka VAT Act; Seeks Clarification on Eligibility A company involved in coffee and tea cultivation in Karnataka seeks clarification on input VAT credit eligibility for fertilizers used in their plantations. A tax consultant advises that under the Karnataka VAT Act, crops are not classified as goods, thus disqualifying them from input tax credit. The company argues that the Act does not explicitly deny such credit for fertilizers and contends their use is part of business operations. The consultant references a Karnataka High Court judgment affirming that companies engaged in growing and manufacturing tea/coffee are not entitled to input credit for agricultural inputs. (AI Summary)
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