siva
(Student CA Final )
(181 Points)
Replied 06 February 2018
Dhananjay saraf
(Chartered Accountant)
(254 Points)
Replied 06 February 2018
You have to follow section 18 read with rule 40 under which you need to-
1. Reverse credit @ 5% for every quarter or part thereof or
2. Pay GST on transaction value of the sale of capital goods.
GST Provisions-
Section 18(6)-
In case of supply of capital goods or plant and machinery, on which input tax credit has been taken, the registered person shall pay-
1. an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by such percentage points as may be prescribed or
2. the tax on the transaction value of such capital goods or plant and machinery determined under section 15,
whichever is higher:
Rule 40(2)
The amount of credit in the case of supply of capital goods or plant and machinery, for the purposes of sub-section (6) of section 18, shall be calculated by reducing the input tax on the said goods at the rate of five percentage points for every quarter or part thereof from the date of the issue of the invoice for such goods
siva
(Student CA Final )
(181 Points)
Replied 06 February 2018
CAclubindia
