Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

ITC on Fixed assets

SOWJANYA M (840 Points)

24 December 2019

dear all

purchase on computer for official purpose, If ITC is availed depreciation not be claimed?

Reply
Follow
Share

4 Replies

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 24 December 2019

If ITC availed then Depreciation available on basic value of computer...

(Generally the argument not required or reasonable. bcoz, once the Ledger posted then it's not to account in other heads. it's my opinion).

Upgrade to CAclubindia Pro. Subscribe Now!

SOWJANYA M (840 Points)
Replied 24 December 2019

Our ACCOUNTANT says that if once ITC availed then we are not supposed to claim depreciation on it.
my doubt is if it so, then should I debit computer in expenses account?

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 24 December 2019

As said by Mr Raja P M sir, you can avail ITC and you can do the depreciation also.

For Example : An asset has a value of Rs 118/- Inclusive of 18% GST, avail Rs 18 as input tax and do the depreciation on taxable value Rs 100 @ 40%