input credite on capital goods

[krishan sharma]

dear sir

i have a quiry that if a customer purchased a capital good like machine and paod consideration 120000 inwitch include 12000 vat amount then he avialed the vat inpute and setteled as per requirement of law (1/3) in witch my quiry that is he elisible for charge on depreciation  on 12000 or not  and further in case he is not availed the input credite then he can it plaese provide the reaion ble solution with exmaple

AI Summary

Claiming Depreciation and VAT Input Credit on Capital Goods: Understanding the Rules and Restrictions A discussion forum participant inquired about the eligibility of claiming depreciation on VAT paid for a capital good, specifically a machine, when VAT input credit has been availed. Pradeep Khatri responded, clarifying that depreciation and CENVAT credit cannot be claimed simultaneously on capital goods. Another respondent, Neeraj Kumar, found the query unclear and requested a more straightforward explanation, asking whether the question pertained to central excise. The discussion revolves around the intersection of VAT input credit and depreciation claims on capital goods.