Please Help: VAT

Dear Rishab,

The basic principle is that the input tax credit is allowed either when the product is sold as such or when the goods are used in the manufacture of any other good which is sold.

Thus, keeping in light the basic principle, the sales tax credit i.e. input tax credit in respect of laptop which is used for official purpose shall not be allowed. However, you are requested to mention the state in respect of which you want to know the same so that the answer can be given more specifically.

Hope the above suffice.

First of all , I would also like to request u to mention the state u r talking about, as Mr. ashish did, But then i would like to mention here, that laptop for office use would be classified under the head capital goods, input credit on which can be availed, but terms and conditions for availing credit of vat paid on capital goods are different from the terms & conditions , on which normal input credit of vat of goods purchased for resale is given. So pls go through the provisions regarding claim of input credit of vat paid on capital goods, of that particular state vat act.

Dear Rishab,
As per Section 13(5)(d) of the Punjab VAT Act, 2005 as extended to the Union Territory of Chandigarh , a taxable person under this section, shall not qualify for input tax credit in respect of the tax paid on purchase of office equipment and building material, unless the taxable person is in the business of dealing in such goods. In other words, credit on laptop will be allowed only if the dealer is dealing in such goods.
In the instant case the laptop is used in the accounts section and it is assumed that the dealer is not dealing in laptops. Thus, the credit of tax paid on laptop will not be available.
Hope the above suffice.