VAT paid on the following purchases is not admitted for set-off
Particulars
Motor vehicles purchased as capital assets and their parts, components and accessories.
Motor Spirits unless it is inter-state sale or resale, export or branch-transfer.
Purchase of intangible assets except for SIM cards, Import/ export Licence, Software in case you are a software dealer, Copyright which is sold within 12 months of date of purchase.
Works contracts resulting in immovable property other than Plant and Machinery.
Purchase of any goods other than plant and machinery and where the property in goods is not transferred.
Other Areas:
Crude oil purchased by oil refinery in case it is used for refining.
All Purchases by shipping companies.
If you are principally engaged in doing job work and only waste goods and scrap are obtained, processed and sold by you then no set-off is available to you.
If you are holding an entitlement certificate to claim incentives under rule 58 then no set-off is available to you.
Purchases of liquor by dealer who has opted for composition scheme.
Purchases by Mandap Keeper who opted for composition scheme.
Purchases of capital assets by hotelier from 1st April, 2005 onwards, which do not pertain to the supply of consumable as part of kitchens and services.
The total of VAT amount on the above given purchases will give us the amount
of Non Availability of set-off.