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.

[YAGAY andSUN]

Dear Ramakrishnan,

You may avail the Input Tax Credit on EB panel modification work in your factory as electrical installation falls under the category of Capital Goods. You may avail 50% in the current year and 50% credit in subsequent year.

Please check the Input Tax Credit provisions in the TNVAT Act read with Rules made thereunder.

Regards

Team YAGAY and SUN

AI Summary

Input tax credit available for electrical installation in factory; credit apportioned across years under TNVAT rules. Electrical installation components supplied for EB panel modification in a factory are treated as capital goods and eligible for input tax credit under TNVAT, with the credit to be appropriated across accounting periods in instalments; consult the TNVAT Act and Rules for the exact claiming mechanism and timing.