Input Tax credit on capital goods

[Guest]

A plain reading of AP VAT ACT and rules gives an impresion that Input Tax credit on capital goods can be claimed in one shot and not in installments spraed over a period. Is that correct. Can some one enlighten me.

[Guest]

Input tax credit can be carried forward , and can be adjusted against the suceeding months taxes also.

[Guest]

You are right AP VAT Act/Rules does not contain any specific provision that ITC on capital goods is to be spread over a period. Thus, you can avail ITC in one shot and if any excess remains after adjustment of liability, the same can be c/fd to subsequent period.

[soni joshi]

can we claim ITC on capital goods??

AI Summary

Input Tax Credit on Capital Goods Under AP VAT Act Can Be Claimed in One Installment; No Spread Required. A query was raised regarding the claim of Input Tax Credit (ITC) on capital goods under the Andhra Pradesh VAT Act, questioning whether it can be claimed in one installment or must be spread over time. Respondents clarified that the AP VAT Act does not require ITC on capital goods to be spread over a period, allowing it to be claimed in one installment. Excess ITC can be carried forward and adjusted against future tax liabilities. Another participant questioned the eligibility to claim ITC on capital goods, seeking further clarification.