A Company has purchased God idols worth Rs.2,00,000/- on which ITC is charged. How to account such purchase. Whether it is debited in the capital account or Fixed Asset. And also can ITC be claimed on such purchases?
5 Replies
Mayur Patil
(Article)
(1276 Points)
Replied 01 November 2018
Sir, as per my knowledge AS 10 property plant equipment 'asset means from which future economic benefits will arise'.
And ITC is available on 3 Types of Purchases.
a. Inputs – Raw Material (P&L Item)
b. Input Service – Service Received like Repair Service. (P&L Item)
c. Capital Goods – Assets Purchased. (Balance Sheet items)
If we cannot show it as asset then we cannot claim ITC.
And ITC is available on 3 Types of Purchases.
a. Inputs – Raw Material (P&L Item)
b. Input Service – Service Received like Repair Service. (P&L Item)
c. Capital Goods – Assets Purchased. (Balance Sheet items)
If we cannot show it as asset then we cannot claim ITC.
robin garg
(ipcc)
(275 Points)
Replied 01 November 2018
Itc can be claimed for it.... Is it is for decoration of office.. It is for business business so you can claim itc for it
Mayur Patil
(Article)
(1276 Points)
Replied 01 November 2018
Robin sir, can we consider it as asset? If yes then we should show under the block of furniture & fixture or something else?
robin garg
(ipcc)
(275 Points)
Replied 01 November 2018
According to me it can be considered as furniture or fixture and itc can be claimed on it
Amish Maknojia
(Student)
(507 Points)
Replied 01 November 2018
I think it should be considered as an expense as it doesn't fall in the definition of asset
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