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Answer to FAQ
FAQ: In the course of the manufacture of taxable goods certain consumables such as furnace oil, lubricating oil for machinery etc are use. Can input tax credit be availed of in respect of such goods?

ANs: Yes. As per section 2(xxiii) “input tax” means the tax paid or payable under the Act by a registered dealer to another registered dealer on the purchase of goods in the course of business. Consumables (Other than fuel used in motor vehicles or vessels) are also covered by this.




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