input tax credit on parts of machinery

Querist : Anonymous (Querist) 19 August 2010 This query is : Resolved
gud morning,
sir my question is, i m a manufacturer of taxable goods and purchased machinery parts and electrical goods which are used in machinery for the smooth working of machinery and paying vat on these items. some of the items are taxable @5.5% and someone is taxable @13.75%.
I just want to know whether i m entitled to claim input tax credit on these items. if yes, then in which catageory i.e. under capital goods or general goods.

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A V Vishal (Expert) 19 August 2010
Input Tax Credit on capital goods is available for manufacturers and traders. Tax credit on capital goods may be adjusted over a maximum of 36 equal monthly instalments (This may differ in different States at their option reduce this number of instalments). There will be a negative list for capital goods (on the basis of principles already decided by the Empowered Committee) not eligible for input tax credit. Tax credit on capital goods will essentially be available for those capital goods, which are required for keeping the goods in saleable condition.

B.R. BHALLA, ADVOCATE (Expert) 19 August 2010
Every State has different law as regards the IPT (input tax) credit. The querist should mention the State where he is registered dealer, otherwise he going to get a vague reply.

s.subramanian (Expert) 20 August 2010
I agree with Mr.Vishal and Mr.Bhalla.

soumitra basu (Expert) 22 August 2010
Please mention the name of the state to give correct answer.

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