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 and SUN]

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

Capital goods VAT credit: eligibility for transformer and associated panels depends on qualifying as plant and machinery under VAT rules.
Availability of input tax credit for a transformer, panels and cables depends on whether they qualify as Capital Goods used in manufacture; one view permits credit if so used, another relies on Section 18 and the definition of Capital Goods to suggest credit may be disallowed because a transformer is not expressly specified, and recommends obtaining an advance ruling or departmental clarification.