ITC & Depreciation on Assets

This query is : Open

Jittu (Querist)
Follow

24 September 2023 As an advertising company, we have purchased raw materials on GST Tax Invoice and incurred labour charges for construction of a display hoarding which allows me generate monthly rental income from it. Now the confusion is that I have already claimed ITC on purchase of raw materials for the construction and developed this asset i.e. display hoarding, so can I claim year on year depreciation on this asset?

RAJA P M

RAJA P M (Expert)
Follow

25 September 2023 Already You claim ITC, then the question can't arise.

RAJA P M

RAJA P M (Expert)
Follow

25 September 2023 Yes, You Can claim depreciation as per applicable value

Upgrade to CAclubindia Pro. Subscribe Now!

Jittu

Jittu (Querist)
Follow

25 September 2023 Can you please explain in detail? In first answer, you said, that when ITC has already been claimed, then the question can't arise. What does that mean? What I could understand is if I have already claimed ITC, I cannot claim depreciation. Is my understanding correct?

But then in the second answer, you said that I can claim depreciation on applicable value?

Both these answers contradict each other. Can you please give better explanation for my understanding.

Thankyou in advance.

RAJA P M

RAJA P M (Expert)
Follow

26 September 2023 RAJA P M • 25 September 2023 Yes, You Can claim depreciation as per applicable value. (Construction then it will account in asset. so only I replied in first answer...)

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
Follow

28 September 2023 DEPRECIATION CAN'T BE CLAIMED ON AMOUNT OF ITC AVAILED. ON REST OF AMOUNT DEPRECIATION CAN BE CLAIMED SUBJECT TO PROVISIONS OF INCOME TAX ACT.

Message likes : 1 times