43(1) explanation 9
This query is : Resolved
gadreandbhide
(Querist)
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.
Nikhil Kaushik
(Expert)
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.
gadreandbhide
(Querist)
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?
Nikhil Kaushik
(Expert)
23 October 2013
I believe the answer remains same.
gadreandbhide
(Querist)
23 October 2013
section 43(1) explanation 9 nowhere mentions VAT credit can be claimed to reduce the cost of the asset
CA Pallav Singhania
(Expert)
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..
Nikhil Kaushik
(Expert)
23 October 2013
well then apply common sense. You cannot claim credit for the same thing twice.
gadreandbhide
(Querist)
23 October 2013
ok..thank you!
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