CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 18 June 2021
There are 2 options:
Opt1 (preferred)
1) Make a purchase entry showing the break up of asset and tax (ensure to configure the asset under ineligible credit category)
2) Transfer the tax component to the asset account back (through Journal under statutory adjustment option)
Opt2: (not preferred)
1) Make a journal entry to record the total value of the capital asset (including tax)
Opt2 is not preferred because such entries would not form part of GST return summary in Tally
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 18 June 2021
You will have to capitalize the tax amount with the asset. The tax amount will form part of value of asset. Depreciation will be claimed don the whole amount.
CAclubindia
