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

[YAGAY and SUN]

You may avail Input Tax Credit.

[SANTHANA KRISHNAN]

THANKS. But the EPCG is to be installed at our R&D Dvn. Can we still take the input tax credit?

pl explain.

regards

jr

Input Tax Credit is eligible for goods used as raw material or incidental goods or packing materials, plant and machinery for manufacturing of other taxable goods which to be sold in state, interstate sales or export or purchase taxable goods for resale. Its cover plant and machinery also and which is used for manufacturing either for R&D section. R&D Section machinery works as Pre-production stage and thus an part of manufacturing, ITR eligible.

Sunil Jain

9713842437

[PARTHASARATHY V]

Yes, If the capital goods is listed with the list of machinery, you can take Input credit in 3 stages, 50% in the First year and balance in the remaining two years.

AI Summary

Input Tax Credit on EPCG local procurements permitted for plant and machinery used in manufacturing, with phased recovery.
Input Tax Credit is available on local procurement under the EPCG scheme for goods-including raw materials, incidental goods, packing materials and plant and machinery-when used in manufacture for domestic sale, interstate sale or export. Capital goods installed in an R&D division are treated as part of manufacturing and qualify for credit. Where capital goods qualify, the credit may be claimed in stages, with an initial portion in the first year and the balance over subsequent years, subject to applicable state VAT/CST rules and compliance.