Meaning of capital goods
Jamal Uddin Siddiqui (350 Points)
06 April 2020
what is meaning of capital goods or gst on capital goods
Jamal Uddin Siddiqui (350 Points)
06 April 2020
inderjeet saini
(227 Points)
Replied 06 April 2020
CA Naveen Chand
(Chartered Accountant)
(12729 Points)
Replied 06 April 2020
AGREED with @ inderjeet saini
and one more thing ITC on capital goods can be claimed 100% at once unlike earlier in Excise .
Spurto Consultancy Services
(Consultant)
(1891 Points)
Replied 06 April 2020
According to section 2(19) of the Act, “capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;
Further, the following points to be noted:
1. Assuming that the value of capital goods was not capitalised in the books of account, the person purchasing such capital goods would still be eligible to claim input tax credit on them since the definition of ‘input tax’ applies to goods that are not capitalized;
2. Capital goods lying at the job-workers premises would also be considered as ‘capital goods’ in the hands of the purchaser as long as the said capital goods are capitalized in his books of account.
Capitalized value of capital goods may include services as an incidental component of a composite supply.
Shivam RC
(Student)
(23683 Points)
Replied 06 April 2020
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