vat credit issue

[pardeep bisht]

please clear, vat credit is available on the raw material partially used byself for manufacturing the product on job work for export oriented unit

AI Summary

VAT credit availability: paying VAT on materials in job work permits set off; composition scheme limits set off and exports seek refund.
VAT credit depends on treating raw material used in job work as part of a works contract and on how VAT is paid; if VAT is paid on materials used in the works contract the taxpayer may claim VAT set off, while composition scheme payers have a reduced set off entitlement and export oriented units must claim any recovery by departmental refund.