TaxTMI 
TaxTMI 
Claiming 0f VAT on Generator (Capital Goods), which is using in Mines quarry area and no power connection was there for production of rough granite blocks. Without, generator there is no possibility of production of goods. Hence, is there any possibility of claiming input credit on capital goods like generator?
Availment of credit on capital goods
03 Sep 2009 
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Input tax credit on capital goods: generator used in off-grid mining qualifies for VAT credit where essential to production.
The generator, being a capital good used directly in the production process at an off grid mining location, qualifies for VAT credit because its use is essential to enable manufacture or extraction of goods. (AI Summary)
The generator, being a capital good used directly in the production process at an off grid mining location, qualifies for VAT credit because its use is essential to enable manufacture or extraction of goods. (AI Summary)
