tnvat input tax credit for electric cables

[Ramakrishnan Seshadri]

Dear Sir,

We are the manufacture of automobile parts in Kanchipuram.We have done EB panel modification work our factory. The supplier submitted the bill which includes supply of switch and cables purchased for this modification.

My question is whether tnvat is eligible for taking input tax credit .

Also let me know whether electrical spares /cables are eligible for input tax credit under tnvat.

Kindly let us know the section/rule under tnvat.

Thanks and Regards,

S.Ramakrishnan.

AI Summary

Auto Parts Manufacturer Eligible for Input Tax Credit on Electric Cables Under TNVAT Act for Panel Modifications A manufacturer of automobile parts in Kanchipuram inquired about the eligibility for input tax credit under the Tamil Nadu Value Added Tax (TNVAT) for electric cables and spares used in electrical panel modifications. The response clarified that input tax credit can be availed for such modifications as they are considered capital goods. The manufacturer can claim 50% of the credit in the current year and the remaining 50% in the subsequent year, in accordance with the TNVAT Act and its rules.