VAT credit of Uniform of restaurant Staff

[Guest]

VAT/Sales Tax We are a hotelier having Hotel cum Restaurant in Rajasthan? Can we take VAT credit in respect of the followings: a)Uniform of restaurant Staff b)Chimneys & pipe line for drainage in restaurant kitchen c)Microwaves d)Marble & Tiles fitted in kitchen e)Electry fittings f) Candles for decoration in restaurent

[Guest]

VAT Credit is allowable in respect of all goods or material which are traded in ordinary course of business or used in manufacturing of product (in which manufacturer trade). In your case all item used in cooking (whether capital goods or not) VAT credit shall be allowed. a)Uniform of restaurant Staff :- Allowed if dress is commenly used in kitchen. b)Chimneys & pipe line for drainage in restaurant kitchen :- yes, allowable c)Microwaves :- yes, allowable d)Marble & Tiles fitted in kitchen : Not allowable, since not used in cooking or anciliary in cooking process. e)Electric fittings: Only for related to equipment used in cooking. f) Candles for decoration in restaurent: Not allowable

AI Summary

VAT credit eligibility clarified: cooking-related restaurant goods eligible for credit, decorative and structural items excluded. VAT credit is allowable for goods traded in the ordinary course of business or used in preparing products sold; in a hotel restaurant setting, credits are permitted for items directly used in cooking or ancillary to the cooking process (uniforms commonly used in the kitchen; kitchen chimneys and drainage pipelines; microwaves), while items not used in cooking or as ancillary inputs (marble and tiles, decorative candles) are not allowable and electric fittings qualify only to the extent they relate to cooking equipment.