VAT CREDIT ON CONSUMABLES STORES

[Amit Kejriwal]

Hi,

I wanna to know whether we can take vat credit on Consumable used for Providing Services. The unit is charging a service tax on the bill. Is Unit can availed the Input Vat credit for Consumables Stores Items Used in Providing Services. If yes the specify the Circular no/Notification No/Relevant Section.

Thanks & Regards

Amit Kejriwal 

[YAGAY and SUN]

VAT is the subject matter of the State and Service Tax is of Centre, How both tax laws are connected?

AI Summary

VAT credit applicability for consumables used in taxable services questioned due to separate State VAT and Central service tax regimes. Whether an input VAT credit can be claimed on consumable stores used in providing services where service tax is charged on the bill is questioned; the preliminary substantive point is that VAT is a State subject and service tax is a Central subject, requiring examination of how State input tax credit rules interact with Central service taxation.