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 is claimable in one lump, with excess carried forward and adjusted later. Input tax credit for capital goods under the AP VAT framework may be claimed in one lump sum because the Act and rules do not require spreading such credit; any excess after adjustment against current liability can be carried forward and adjusted against subsequent tax liabilities.