capita;isation of taxes for Fixed Assets
This query is : Resolved
19 March 2009
a manufacturing company has purchased fixed asset and is not capitalising the taxes like vat, cst , excise duty etc.
is their this policy right?
is vat / cst/ excise on Fixed Asset refundable
is their this policy right?
is vat / cst/ excise on Fixed Asset refundable
19 March 2009
Yes company's policy is right!! as ultimatly company is getting CENVAT so taxes are not gonna capitalise.
19 March 2009
Yes company's policy is right!! as ultimatly company is getting CENVAT so taxes are not gonna capitalise.
CA Tilak Raj Sharma
(Expert)
19 March 2009
Please note there is no credit in case of CST. This is only for VAT & Excise duty.
19 March 2009
Only VAT & Excise Duty would be refunded as a credit and due to the same are seperate assets of the company it can not be clubed with fixed assets head.
24 March 2009
For duty for which assessee is getting Credit will not allowed to be capitalize, and if credit is not available then only capitalization is allowed.
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