Claim of capital goods

[madhavvan n]

company has taken registration under tangibale goods supply since under mvat any lease is liable for vat it charges vat and since it falls under service tax provisions is it liable to service tax can it claim credit of cgoods inputs and input service

AI Summary

Company Questions VAT and Service Tax Liability; Clarification on CENVAT Credit for Capital Goods and Services A company registered under tangible goods supply is questioning its liability for VAT and service tax, and whether it can claim credit for capital goods, inputs, and input services. The response clarifies that VAT applies when control and possession of goods are transferred. For service tax, liability arises when control remains with the owner. In such cases, CENVAT credit on capital goods (excluding motor vehicles), input services, and inputs used in providing the service is available.