ELIGIBLE PURCHASE FOR INPUT TAX CREDIT To be eligible for the credit, the purchases should be for any of the following purposes : 1. For sale / resale within the state 2. For sale to other parts of India in the course of inter-state trade or commerce 3. For being used in execution of a works contract 4. To be used as capital goods required for the purpose of manufacture of taxable goods 5. To be used as a) raw materials b) capital goods c) consumable stores d) packing materials / containers and goods so manufactured by the use of above items are sold in the course of export out of the territory of India. 6. For making zero rated sale like sale to exporters or sale to SEZ or to international organisations 7. To be used as containers or packing material, raw material, consumable stores in manufacture of taxable goods or in the packing of such manufactured goods (intended for local or inter state sale) Special economic Zone means a specific area which has been declared to be SEZ by the Government and the persons having their units in the SEZ shall be required to export the goods manufactured by them and there will not be any output tax. The persons selling goods or providing services in the SEZ shall not charge any tax from the buyers in the SEZ but the seller shall be allowed tax credit as a special case. NEERAJ GUPTA TAX CLASSES For regular tax audio revisions through whatsapp please register free by sending name and city at 9811651641 For facebook updates click get notifications after liking the facebook page fb/freetaxationclasses
Posted on: Sat, 24 Jan 2015 07:39:02 +0000