This query is relating to the Karnataka VAT. A manufacturing concern is getting its machines repaired. The person who repaired the machines had to change certain material and he charged VAT for the same. Whether the same is claimable?
I saw the section which defines goods - it does mention repairs.
and input can be taken on goods.
So does my claim on saying input can be claimed on goods tenable?
Manufacturing companies can claim VAT input tax credit on repair materials if used in producing taxable goods and conditions are met. A manufacturing company in Karnataka inquired about claiming VAT input on materials used for machine repairs. The query addressed whether VAT charged on these materials is claimable as input tax. The response clarified that the company can claim input tax credit on goods used for repairs, provided conditions like having a tax invoice are met. The machinery is used in manufacturing taxable goods, thus qualifying the materials as inputs. Input tax credit is applicable for goods used directly or indirectly in the manufacturing process, allowing the company to claim the VAT paid on these repair materials. (AI Summary)
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