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Fixed Asset input

11 August 2023

Suppose 3 No. new chair purchased for worth Rs.30000/

Instead of debiting to furniture & fixture under Asset , debited to furniture repairs & Maintenance in profit and loss account

After debiting to profit and loss account , we taken full gst input .

My question is though asset we debited to profit & loss account can we avail full gst input credit or neet to reversal some portion.If reversal
yes , then what portion and which section / rule.

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8 Replies

sabyasachi mukherjee (27574 Points)
Replied 11 August 2023

Asset account must be debited. Reverse the entry. Book it fa schedule.

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Rajkumar Gutti (591 Points)
Replied 11 August 2023

My question is if asset is debited to profit & loss a/c then can gst input fully available

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 August 2023

Originally posted by : Rajkumar Gutti
	My question is if asset is debited to profit & loss a/c then can gst input fully available

No issues, You can avail the ITC for the Purchase of Furnitures.

Also make a JV and transfer the Expenditure to FA...

Rajkumar Gutti (591 Points)
Replied 11 August 2023

But I heard that , there is restriction to avail full credit of itc on capital goods even though debited to profit and loss a/c

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 11 August 2023

Originally posted by : Rajkumar Gutti
	But I heard that , there is restriction to avail full credit of itc on capital goods even though debited to profit and loss a/c

But I heard that ,

--> Where is You heard ....??

--> What You heard...?

Ask with correct details...

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Rajkumar Gutti (591 Points)
Replied 12 August 2023

As per sec.2 (19) capital goods which are not capitalised ,that is to say not debited to respective asset account , itc in respect there of is not available to be taken credit.

sabyasachi mukherjee (27574 Points)
Replied 13 August 2023

Asset Is never debited to profit loss account wring conception.

Rajkumar Gutti (591 Points)
Replied 16 August 2023

We purchased computer UPS amount Rs.4500/- .

Is this UPS can required to be capitalised.presently we debited to computer repairs and maintenance A/c & taken full Gst credit.Pl.guide