Capital Goods Cr. in Cenvat & Depreciation.
This query is : Resolved
16 April 2010
Dear Sir,
Last year (2009-10) We have Purchased machinery. and taken the 50% credit of cenvat.
and now can we will claim for depreciation on the same ?
Pls help.
Thanks & Regards,
Rajendra Ahire
Last year (2009-10) We have Purchased machinery. and taken the 50% credit of cenvat.
and now can we will claim for depreciation on the same ?
Pls help.
Thanks & Regards,
Rajendra Ahire
16 April 2010
Dear Mr. Rajendra,
When you have capitlzed any Plant & Machinery in which cenvat is taken.
THen it is capitlzed net of cenvat & vat.
for example you have purchased machinery of Rs. 114400/- from vendor.
Plant & Machienry Dr 100000
Cenvat - Capital Goods Dr 5000
Cenvat to be availed- capital Goods Dr5000
Vat Credit on CG Dr 4400
To Vendor. Cr. 114400
i.e deprecaiton is to be claimed on net value of asset.
When you have capitlzed any Plant & Machinery in which cenvat is taken.
THen it is capitlzed net of cenvat & vat.
for example you have purchased machinery of Rs. 114400/- from vendor.
Plant & Machienry Dr 100000
Cenvat - Capital Goods Dr 5000
Cenvat to be availed- capital Goods Dr5000
Vat Credit on CG Dr 4400
To Vendor. Cr. 114400
i.e deprecaiton is to be claimed on net value of asset.
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