Dear Sir,
Whether credit on capital goods can be taken immediately on receipt of the goods?
1. Yes
2. No
3. After usage of such capital goods
4. After capitalizing in books of accounts
What is the correct answer from above four option?
3 Replies
pradeep goyal
(Senior Partner)
(7561 Points)
Replied 25 August 2019
receipt is a condition to avail ITC as per section 16. capital goods definition says anything which is capitalized in books is a capital asset. so date of capitalization is important
Shivam RC
(Student)
(23683 Points)
Replied 26 August 2019
As per the Provision of Section 16(2) of the CGST Act 2017, inorder to claim ITC, a person has to satisfy the below mentioned FOUR CONDITIONS :
1). Received the Goods or Services.
2). Possession of TAX INVOICE.
3). Supplier must have paid the taxes ( GSTR-3B ) and,
4). The Recipient must have filed the Return.
An Asset becomes a Capital Asset when it is capitalised in the books of accounts of the person claiming ITC [ 2(19) of the CGST Act 2017 ].
Hence, correct answer is (4).
1). Received the Goods or Services.
2). Possession of TAX INVOICE.
3). Supplier must have paid the taxes ( GSTR-3B ) and,
4). The Recipient must have filed the Return.
An Asset becomes a Capital Asset when it is capitalised in the books of accounts of the person claiming ITC [ 2(19) of the CGST Act 2017 ].
Hence, correct answer is (4).
Recent Topics
- RCM. ON RENT PAID BY COMPOSITION DEALERS
- Development cess and RCM
- Mistake in challan 26 QC while depositing TDS for
- NGO work related
- Query on tax deduction on source
- Best Game Platforms
- Need help regarding a non-functioning Private Limi
- RCM on payent of rental charges of commercial prem
- Manufacturing under shops and establishment act?
- If registered person renting immovable property in
Related Threads
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert14 February 2025 -
Survey, Search and Seizure under Income Tax Act 1961
CA Hari Agarwal
CAclubindia
