How to differentiate VAT on Capital goods and Otherthan Capital goods
Our customer wants to differentiate VAT paid on purchase of Capital goods and VAT paind on purchase of Otherthan Capital goods.This is as per the Gujarat State VAT return requirement.
Thanks in advance.
Peter Juby replied
The best option is to create a separate TAX group for Capital Purchases. On every transaction where capital goods are purchased the user will have to select the tax group for capital and not the standard input tax group.
Hope this helps