Epcg - local procurement

[SANTHANA KRISHNAN]

similar to TED refund, any VAT refund is applicable in case of local procurement of CG under EPCG licence?

the state is Tamil Nadu.

pl clarify.

regards

J Ramamurthy

7299162725

AI Summary

Clarification on VAT refunds: ITC eligible for capital goods under EPCG license, claim 50% first year, remainder later. A participant in a discussion forum inquired about the applicability of VAT refunds for local procurement of capital goods under an EPCG license in Tamil Nadu. The initial response suggested availing Input Tax Credit (ITC). Further clarification revealed that ITC is eligible for goods used in manufacturing, including machinery for R&D, as it is part of the pre-production stage. Another contributor confirmed that if the capital goods are listed as machinery, ITC can be claimed in stages: 50% in the first year and the remainder over the next two years.