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

Input tax credit: routine repairs and housekeeping expenses treated as non allowable unless statutory credit conditions are met. A query asked if VAT paid on vehicle repairs and housekeeping items is creditable under the Tamil Nadu VAT/DVAT regime; one reply stated such items are not allowable for ITC, while another set out cenvat credit conditions: both parties must be registered, the supply intra state, the supply taxable, supported by a valid tax invoice, and the goods/services must be for direct business use.