Input tax credit-TNVAT

[yash arya]

Dear Sirs,

A manufacturer-dealer has purchased a Weigh Bridge with TNVAT tax and installed the same within factory premise. It is used to weigh Input materials inwarded and Final goods despatched from the factory. Please clarify whether the vat tax paid thereon is eligible for ITC under TNVAT Act ??? Kindly provide any circular/case law on this issue.

Thanks- Shekar R

[YAGAY andSUN]

Dear Yash/Shekar,

Please check Section 19 (2) (iv) of the TNVAT Act, 2006 read with conditions as mentioned in the other sections of the TNVAT Act and also read with Rules made thereunder.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Input Tax Credit eligibility for VAT on a factory weighbridge depends on statutory conditions and applicable rules. The query concerns whether VAT paid on a factory-installed weighbridge used for weighing inputs and finished goods qualifies as Input Tax Credit. The reply advises consulting the statutory provision on input tax credit and the associated eligibility conditions and rules, indicating entitlement depends on meeting those specific criteria and procedural requirements.