Amol Mane (Partner) 27 November 2010
My friend is a mashroom manufaturer and seller. He wants to take input tax credit of the material used in the mashroom farming. e.g. preservator machinery,etc/. Can he claim the input tax credit? If he treated as farmer as per definition , then he cannot, if he is treated as dealer then he can claim. Is mashroom farming is agriculture or else as there is no cultivation as per definition of agriculturist.. Pl reply
Pawan Kejriwal (Advocate) 28 November 2010
he can claim setoff on capital assets i.e.capatlised as P&M even he is not an manuacturer and only doing processing. He need to register under the VAT Act and therafter make purchases. He can claim refund for the VAT paid on P&M. His product need not be na taxable sale. Even setoff is allowed on agricultual produce also in VAT.
© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.
