Vat input credit

[chandrashekhar bathini]

Dear sir,

A company providing construction services in Telangana(construction of building ) and is paying wok contract tax @5% on 70% of the contract value

shall we take the input vat credit on purchases made(cement,steel,concrete mixer,consumable stores)against work contract tax.

AI Summary

Input VAT credit generally unavailable for building construction inputs, with an exception for works contract businesses.
A Telangana construction-services supplier paying works contract tax is generally precluded from claiming input VAT credit on materials used in building construction; departmental practice rejects such claims. The cited para 14(i) excludes inputs used in construction or maintenance of buildings from input credit, but contains an exception for taxpayers who are in the business of executing works contracts.