APVAT : No Input Credit on 11 Types of Goods

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APVAT : No Input Credit on 11 Types of Goods

Input tax is the Value Added Tax or VAT ,  charged by the supplier in the State of Andhra Pradesh on goods purchased for resale, raw materials, consumables, packing materials, capital goods and general office equipment.

It excludes taxes paid other than VAT on purchases from dealers not registered for VAT or on purchases from outside the state or outside the country. It does not include VAT paid on goods not meant for business. VAT charged in these circumstances is not your input tax.

The purchases on which you cannot claim a credit for your input tax are DEFINED AS PER Rule20 (2) of APVAT Act are also known as Negative List . Following are list of 11 Types of Goods on which no input credit is allowed under APVAT Rules.

a All automobiles including commercial vehicles/two wheelers/three wheelers required to be registered under the Motor Vehicles Act 1988 and including spare parts for the repair and maintenance thereof; unless you are in the business of dealing in these goods.
b Fuels used for automobiles or used for captive power generation or used for power plants.
c Air conditioning units other than used in plant and laboratory, restaurants or eating establishments, unless you are in the business of dealing in these goods.
d Any goods purchased and used for personal consumption.
e Any goods purchased and provided free of charge as gifts otherwise than by way of business practice.
f Any goods purchased and accounted for in the business but utilized for the purpose of providing facilities to employees including any residential accommodation.
g Crude oil used for conversion / refining into petroleum products.
h Natural gas and coal used for power generation.
i Any input used in construction or maintenance of any buildings including factory or office buildings, unless you are in the business of executing works contracts.
j Earth moving equipment such as bulldozers, JCB’s and porcelain etc., and parts and accessories thereof, unless you are in the business of dealing in these goods.
k Generators and Parts and accessories thereof used for captive generation unless you are in the business of dealing in these goods.

Readers were already posted about  the list of VAT exempt category goods in Andhra Pradesh.

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