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FIXED ASSETS

263 views 3 replies

Mohit lodhi

student

952 Points Joined April 2016

I have purchased asset and took the ITC on it and after some time I have sold the asset.
So I have to pay the tax on sale of asset or reverse the ITC or both?

Replies (3)

CA Sanjiv Kumar

3430 Points Joined January 2019

you pay gst on sale of asset and reverse the ITC

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

As per Rule 44
You have calculate the ITC for remaining useful life of capital asset & GST on Transaction value (Sale value) whichever is greater is to be deposit.

suppose asset purchase for RS.50000 & paid GST 9000
>The useful life of asset is 60 months
> used asset for 4 years (48 months)

To calculate ITC attributable to remains usfule life is = ITC X months remain ÷60
= 9000 x12/60= 1800/-

And if suppose sale value is 9000 & GST is 1620/-

Then the GST payable will be 1800/- on sale capital asset