TaxTMI 
TaxTMI 
Dear Expert,
i have some ambiguity in vat ITC on repair / maint and consumable goods. Can we take input on these or not ?
Kindly suggest...
Regard
Vikram
ITC on repair / maint and consumable goods
06 Aug 2015 
2 Replies 
5389 Views Asked by
Guest 
Input tax credit eligibility on repair and maintenance hinges on business use and compliance with invoice and other conditions.
Input tax credit is available on goods purchased for use in the course of business where statutory definitions treat repair parts and maintenance supplies as inputs. Subject to formal conditions such as a tax invoice and other eligibility requirements, goods used to restore machinery to working condition are deemed used in manufacture and attract tax credit. Consumable goods qualify only insofar as their nature and actual business usage demonstrate they are used in the course of business. (AI Summary)
Input tax credit is available on goods purchased for use in the course of business where statutory definitions treat repair parts and maintenance supplies as inputs. Subject to formal conditions such as a tax invoice and other eligibility requirements, goods used to restore machinery to working condition are deemed used in manufacture and attract tax credit. Consumable goods qualify only insofar as their nature and actual business usage demonstrate they are used in the course of business. (AI Summary)