vat credit on transformer and its pannels cables

[AMIT JAIN]

whether vat credit on transformer and its pannels, cables is available under rajasthan vat Act for manufacturer

[YAGAY andSUN]

If the subject goods are being used in your factory premises and comes under the definition of Capital Goods, then, you may avail the Input Tax Credit on such goods. If in doubt, you may go for advance ruling or DDQ.

[Ganeshan Kalyani]

Dear Amit Ji,

As per Section 18 of Rajasthan Value Added Tax Act, 2003, Input Tax Credit is allowed on Capital goods used in the manufacture of goods other than exempted goods.

Capital Goods has been defined under Section 2(7) as ''Capital goods'' means plant and machinery including parts and accessories thereof, meant for use in manufacture unless otherwise notified by the State Government from time to time in the Official Gazette;”

From the above provision, in my view, credit would not be allowed, because transformer is not specifically given. Thanks.

AI Summary

VAT Credit for Transformers, Panels, Cables Under Rajasthan VAT Act: Insights on Section 18 for Manufacturers A discussion on a forum addresses whether VAT credit is available for transformers, panels, and cables under the Rajasthan VAT Act for manufacturers. One response indicates that if these items are used as capital goods within factory premises, input tax credit may be available, and suggests seeking an advance ruling if uncertain. Another response cites Section 18 of the Rajasthan Value Added Tax Act, 2003, stating that input tax credit is allowed on capital goods used in manufacturing, but notes that transformers are not explicitly mentioned, implying credit may not be available.