VAT credit of Uniform of restaurant Staff , Central Excise

[CA Neetu Bohara]

VAT/Sales Tax We are a hotelier having Hotel cum Restaurant in Rajasthan? Can we take VAT credit in respect of the followings: a)Uniform of restaurant Staff b)Chimneys & pipe line for drainage in restaurant kitchen c)Microwaves d)Marble & Tiles fitted in kitchen e)Electry fittings f) Candles for decoration in restaurent

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[CA Anurag Bansal]

VAT Credit is allowable in respect of all goods or material which are traded in ordinary course of business or used in manufacturing of product (in which manufacturer trade). In your case all item used in cooking (whether capital goods or not) VAT credit shall be allowed. a)Uniform of restaurant Staff :- Allowed if dress is commenly used in kitchen. b)Chimneys & pipe line for drainage in restaurant kitchen :- yes, allowable c)Microwaves :- yes, allowable d)Marble & Tiles fitted in kitchen : Not allowable, since not used in cooking or anciliary in cooking process. e)Electric fittings: Only for related to equipment used in cooking. f) Candles for decoration in restaurent: Not allowable