Input Credit availment/Non availment

[Pradeep Kumar]

Dear All

Kindly provide me the reply of following issue:

a) Company has not availed the credit of VAT charged by the person from whom vehicle was repair.

b) Company has not availed the credit of VAT charged by the person from whom house keeping items purchases.

Are they eligible or not for claiming VAT Credit as per Tamil nadu Vat Act? If anyone has any information kindly share.

Regards

Pradeep

[YAGAY andSUN]

Under DVAT Act, these items are not allowable for availing ITC.

[Guest]

To avail cenvat credit one have to satisfy the following conditions,-

1. both parties must have registered no.

2. both party must be within state.

3. product should be taxable.

4. transaction should be made against valid tax invoice.

5. material should be direct use in business.

AI Summary

Eligibility of VAT Credit for Vehicle Repairs and Housekeeping Items Under Tamil Nadu VAT Act Discussed A query was raised regarding the eligibility of a company to claim VAT credit for VAT charged on vehicle repairs and housekeeping item purchases under the Tamil Nadu VAT Act. Two responses were provided. The first response indicated that under the DVAT Act, these items are not permissible for Input Tax Credit (ITC). The second response outlined conditions for availing CENVAT credit, including registration of both parties, intra-state transactions, taxable products, valid tax invoices, and direct business use of materials.