Can i take the credit of Input VAT on Capital goods? Is there any limit for taking VAT credit?

Question

Can i take the credit of Input VAT on Capital goods? Is there any limit for taking VAT credit?

Answer 1

yes

Answer 2

yes.You can take.there is no limit.

As per VAT Act (Madhya Pradesh) 2002.

Rebate of Input tax

(1) Subject to the provisions of sub-section (5) and such restrictions and conditions as may be prescribed, a rebate of input tax as provided in this section shall be claimed by or be allowed to a registered dealer in the circumstances specified below-

(a) Where a registered dealer purchases any goods specified in Schedule II other than those specified in Part III of the said Schedule within the State of Madhya Pradesh from another such dealer after payment to him input tax for –

(1) sale within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India; or

(2) consumption or use for/in the manufacture or processing or mining of goods specified in Schedule II for sale within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India; or

(3) use as packing materials in packing of goods specified in Schedule II; or

(4) use as plant, machinery, equipment and parts thereof in respect of goods specified in Schedule II; or

3/4(5) consumption or use for/in the manufacture or processing or packaging of  goods declared tax free under section 16, for sale in the course of export out of the territory of India ; or

(5a) consumption or use for/in the manufacture or processing or packaging, other than mentioned in sub-clause (5) above, and in connection with sale, of  goods declared tax free under section 16; or

(5b) as plant, machinery, equipment and parts thereof in consumption or use for/in generation, transmission or distribution of electrical energy.