03-23-2006, 02:23 AM
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by mashhoodalvi</i>
<br />Dear Mustafa,
If purchased or imported fixed asset(s) is directly engaged in the process of making taxable goods (on whose sales output tax is payable) than the claim of input tax is correct.
For example, STax on a generator is claimable if the electric produced from that genset is directly used for the production of taxable goods; but on the other hand, if genset is used to provide electric (in case of load shading) to the office site or the store site will not be allowed.
I hope ur query will be fullfilled.
Thanks
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
SRO issued pursuant to Finance Act 2005 states that supply of plant and machinery, whether manufactured or not, shall not be deemed to be taxable.
Generators in your example are not taxable. And they can be termed as plant and machinery in a sense that they produce energy. I have its practical example for further clarification.
ICAPians, the unparalleled..
<br />Dear Mustafa,
If purchased or imported fixed asset(s) is directly engaged in the process of making taxable goods (on whose sales output tax is payable) than the claim of input tax is correct.
For example, STax on a generator is claimable if the electric produced from that genset is directly used for the production of taxable goods; but on the other hand, if genset is used to provide electric (in case of load shading) to the office site or the store site will not be allowed.
I hope ur query will be fullfilled.
Thanks
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
SRO issued pursuant to Finance Act 2005 states that supply of plant and machinery, whether manufactured or not, shall not be deemed to be taxable.
Generators in your example are not taxable. And they can be termed as plant and machinery in a sense that they produce energy. I have its practical example for further clarification.
ICAPians, the unparalleled..
