Itc on capital goods
This query is : Resolved
23 January 2019
Sir Please clarify the following Question
1.If a company deal only EXEMPTED SUPPLY, and the company purchase machinery (Capital Goods) then the company eligible to claim ITC in single shot, or claim ITC over the life of 5 Year?
2.If a company deal only TAXABLE SUPPLY, and the company purchase machinery (Capital Goods) then the company eligible to claim ITC in single shot, or claim ITC over the life of 5 Year?
3.If a company deal PARTLY TAXABLE SUPPLY AND PARTLY EXEMPTED SUPPLY, and the company purchase machinery (Capital Goods) then the company eligible to claim ITC in single shot, or claim ITC over the life of 5 Year?
1.If a company deal only EXEMPTED SUPPLY, and the company purchase machinery (Capital Goods) then the company eligible to claim ITC in single shot, or claim ITC over the life of 5 Year?
2.If a company deal only TAXABLE SUPPLY, and the company purchase machinery (Capital Goods) then the company eligible to claim ITC in single shot, or claim ITC over the life of 5 Year?
3.If a company deal PARTLY TAXABLE SUPPLY AND PARTLY EXEMPTED SUPPLY, and the company purchase machinery (Capital Goods) then the company eligible to claim ITC in single shot, or claim ITC over the life of 5 Year?
24 January 2019
1. If a company deals only in exempted supply, it is not eligible for any ITC credit. Therefore, the company should take depreciation under Income Tax law even with respect to GST paid.
2. If a company deals in taxable supply only, it should take ITC credit of GST paid. It has to be taken immediately. The company shall not take GST amount in the value of capital goods for the purposes of depreciation under Income Tax Act.
3. If the company deals in exempted and taxable supply, it should take proportional ITC credit; and claim depreciation of rest of the amount in Income Tax.
ITC is always taken in single shot. 5 years period is there in Income Tax laws where one is claiming depreciation. The only thing one has to keep in mind that depreciation under Income Tax laws shall not be claimed of the amount of which ITC credit has been taken.
2. If a company deals in taxable supply only, it should take ITC credit of GST paid. It has to be taken immediately. The company shall not take GST amount in the value of capital goods for the purposes of depreciation under Income Tax Act.
3. If the company deals in exempted and taxable supply, it should take proportional ITC credit; and claim depreciation of rest of the amount in Income Tax.
ITC is always taken in single shot. 5 years period is there in Income Tax laws where one is claiming depreciation. The only thing one has to keep in mind that depreciation under Income Tax laws shall not be claimed of the amount of which ITC credit has been taken.
Message likes :
1 times
24 January 2019
sir I am not understand the meaning o f'' ...If the company deals in exempted and taxable supply/service, it should take proportional ITC credit; and claim depreciation of rest of the amount in Income Tax.
ITC is always taken in single shot. 5 years period is there in Income Tax laws where one is claiming depreciation. The only thing one has to keep in mind that depreciation under Income Tax laws shall not be claimed of the amount of which ITC credit has been taken.''
please explain details
ITC is always taken in single shot. 5 years period is there in Income Tax laws where one is claiming depreciation. The only thing one has to keep in mind that depreciation under Income Tax laws shall not be claimed of the amount of which ITC credit has been taken.''
please explain details
24 January 2019
You are getting confused with ITC and Depreciation. In income tax, you get depreciation; under GST you get ITC. You always get ITC immediately, there is no provision of getting ITC in stages. Depreciation you get in satges as per rates notified in Income Tax Act. The only restriction is that you will not get depreciation of ITC amount.
For example, you brought CG for Rs. 100, GST paid Rs. 18, total 118. If you are not taking any credit, you will get depreciation for complete Rs. 118. If you are taking full credit, you will get depreciation on Rs. 100. If you taking partial credit say of Rs. 8, you will get depreciation on Rs. 110.
For example, you brought CG for Rs. 100, GST paid Rs. 18, total 118. If you are not taking any credit, you will get depreciation for complete Rs. 118. If you are taking full credit, you will get depreciation on Rs. 100. If you taking partial credit say of Rs. 8, you will get depreciation on Rs. 110.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- RCM INVOICING FROM NOV-2024
- Should I report my US salary for January, February, March in Schedule FA?
- GST ON EXPORT COMMISSION
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
