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