Time for claiming input tax credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2013 Dear experts,
pls let me know the time limit for claiming input tax limit on capital goods?n is there any restriction for claiming the same?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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27 March 2013 The purchase of a capital goods is to be declared in the return of same month.If that is not done it can be introduced into the return by way of a revised return within six months.In many states this is the rule. Few states have slighly different provisions. Once the time limit for submission of revised returns is exceeded that eligibility lapses....mjk

CA Priti Surana

CA Priti Surana (Expert)
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01 April 2013 There is no such limit, the only condition is that, the capital goods must be used into the business, for manufacture of taxable goods. it the goods are exempt, then no credit on capital goods. Again if credit taken then that much of credit shall be reversed which is used for exempted goods, either on one to one correlation or on proportionate basis. Now if Capital goods are sold within 5 years, then reversal to the tune of credit proportionate to the no. of years unused, shall be reversed, or paid.

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 April 2013 I agree with both the experts and the credit is to be claimed in the year of purchase of capital Goods but the credit is to be allowed on percentage basis