Give reason in brief, in the context of provisions of VAT, whether following purchases are eligible for availing input tax credit: Ankit purchased some capital goods. The final product manufactured by Ankit using these c
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2016
Give reason in brief, in the context of provisions of VAT, whether following purchases are eligible for availing input tax credit: Ankit purchased some capital goods. The final product manufactured by Ankit using these capital goods is exported out of India.
Answer & Explanation:
Capital goods used for manufacture/packing goods to be sold in the course of export out of the territory of India are eligible for claiming input tax credit. Thus, Ankit can claim input tax credit on capital goods purchased by him.
Topics: Indirect Tax
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