43(1) explanation 9
This query is : Resolved
21 October 2013
if credit of VAT is claimed in books then at what amount asset to be capitalised in I.T. rules?
Example - Cost 10,00,000/-
VAT 50,000
Excise 20,000
should asset be capitalised at 10,00,000 or 10,50,000 assuming full credit is availed.
Example - Cost 10,00,000/-
VAT 50,000
Excise 20,000
should asset be capitalised at 10,00,000 or 10,50,000 assuming full credit is availed.
21 October 2013
It is but natural that if u are claiming the vat credit, the same should not be added to the cost of the asset for depreciation purpose. Accordingly you should capitalize the fixed asset at Rs 10 lakhs.
23 October 2013
thats the treatment in books...
what amount to be taken while adding to the block as per I.T. rules?
what amount to be taken while adding to the block as per I.T. rules?
23 October 2013
I believe the answer remains same.
23 October 2013
section 43(1) explanation 9 nowhere mentions VAT credit can be claimed to reduce the cost of the asset
23 October 2013
Agree with Expert,
As the such credit is admissible, hence not required to be capitalized in the books..
As per I.T rules answer will remain the same..
As the such credit is admissible, hence not required to be capitalized in the books..
As per I.T rules answer will remain the same..
23 October 2013
well then apply common sense. You cannot claim credit for the same thing twice.
23 October 2013
ok..thank you!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Stamp Paper for partnership firm change new income tax 2025
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Value of property in capital gain
- Copyright software
- Regarding TDS Applicability For Director Remuneration
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
