ITC related reg

Marimuthu (Manager) (525 Points)

26 May 2021

A registered dealer purchased the P&M.

Can he avail ITC as wel as depreciation while computing output tax liabilities.

pl explain., experts

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4 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 26 May 2021

No depreciation can be claimed to the extent of ITC availed. If ITC is not availed, then depreciation can be claimed on the total cost including tax.

Marimuthu (Manager) (525 Points)
Replied 26 May 2021

Thank you,

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 26 May 2021

Agree with poornima

Sivaramaraju G (Learner) (2398 Points)
Replied 27 May 2021

You can't take dual benefit. you want ITC then you have to forgo depreciation on ITC part.

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