while considering depreciation for fixed assets should we consider value added tax paid as asset or expenditure.
Devendar Chawla (Service) (74 Points)
04 March 2017while considering depreciation for fixed assets should we consider value added tax paid as asset or expenditure.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 04 March 2017
if you could take the input credit for the asset vat amount will not form part of cost of fixed assets
Sanjay S
(Chartered Accountant)
(1375 Points)
Replied 05 March 2017
Depreciation is all about splitting the Total Capitalised Amount over a number of years.
If you have not capitalised the VAT amount, then you obviously cannot take depreciation. [eg. Whn you have taken input tax credit of VAT paid on capital goods, you cannot capitalise such VAT]
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
