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How to take fixed asset such as machinery

02 May 2018

if anybody could u clear my doubt , we procured new machine to our factory from register supplier , the supplier provided tax invoice, we should know, how to passing entry in books with tax or with out tax under GST

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17 Replies

ANIKET (STUDENT) (157 Points)
Replied 02 May 2018

pass entry with gst, u can pass normal JV in tally for effect in 3b

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Jasjot Singh (Student CA IPC / IPCC) (66 Points)
Replied 02 May 2018

Debit fixed asset then debit gst input and credit supplier

ANIKET (STUDENT) (157 Points)
Replied 02 May 2018

Fixed asset Dr
cgst input Dr
sgst input. Dr
to party name Cr

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 02 May 2018

Fixed assets to be carried in books without GST if you want to claim ITC of GST paid...

If no ITC is taken in GST,then assets to be carried at invoice value i .e. Taxable value + GST....

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Mahendravarman Dhanalakshmi (66 Points)
Replied 02 May 2018

how to should i segregate GST tax under GST rule , how many years must be show that tax in books? along with example
i.e as per vat rule, the capital goods ITC taken 3 yrs segregated in books, I Yr - 50% eligible, II yr -25%, then last year 25% computed that value.

and

Depreciation calculate whether along with tax or without tax to fixed asset? under IT act 1961

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 May 2018

ITC :
You can avail the 100% ITC in single take on or after the Invoice Month. It's means you can take ITC immediately...

Depreciation :
If you are taken the ITC then You ll Debit the Basic Value is Your asset value. You ll book depreciation for Assets Basic Value...

sanjeev kumar goel (Advocate) (260 Points)
Replied 03 May 2018

You have purchased machinery as your fixed asset and you are free to take the benifit of ITC on inputs or not. If you want to avail the benifit of ITC on fixed asset then you may take the value of fixed asset as taxable value of your purchase invoice plus any other charges you have paid to procure that machinery other than GST paid. This GST paid by you will be added in your Input ITC and you can avail it with set off of your current month's liability of GST.

If you don't want to avail the benifit of ITC on inputs of fixed asset then you can debit the fixed asset by total value of purchase invoice plus any othe rcharges you had paid. For depriciation purpose under IT Act the value which you have taken in fixed asset block either with GST or without GST will be considered for calculating depriciation.

In VAT ther ewas a provision to avail the benifit of Input VAT on capital goods in three instalments in three years but in GST you may take the benifit of ITC in same month.

CA Sunil (Internal Auditor) (204 Points)
Replied 03 May 2018

Machine needs to capitalized, assess whether such machinery GST ITC is available or not, if yes pass the given below entries.

1. Machinery A/c Dr XXX

CGST/IGST/SGST A/c Dr XXX

To Vendor A/c XXX

GST ITC is available 100% in the month of invoice date as rightly pointed out by Mr. Raja.

If GST credit is availble then, depreciation cannot claimed on GST Input credit, because you have not debited GST amount in asset a/c, hence there is no question depreciation on GST input credit.

If GST credit not available pass the same JV Machinery A/c Dr and Credit vendor A/c inclusive of GST amount.

Dep on GST ? --->yes, Asset needs to be depreciated inclusive of GST amount, becoz Asset was capitalized inclusive of GST amount.

I hope this clarifies your doubt.

Cheers

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