Capital goods under gst
This query is : Resolved
11 June 2017
What does capital good in gst mean?
When can i take itc?
Who can take itc?
When itc should be taken in instalment s?
Or can treat them as revenue expense ?
If i treat as revenue expense will it contradict AS
When can i take itc?
Who can take itc?
When itc should be taken in instalment s?
Or can treat them as revenue expense ?
If i treat as revenue expense will it contradict AS
11 June 2017
Capital Goods are defined in Section 2(19). As per this section, Capital Goods means goods, the value of which is capitalised in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business.
Yes. you can take credit on capital goods while using the capital goods used or intend to be used for wholly business purpose
Credit of Input Tax will be available in totality where Capital Goods have been used for effecting taxable supplies and business activity without any restrictions
Registered taxable person shall be eligible to avail ITC credited to the e-credit ledger subject to condition prescribed without restrictions.
Yes. you can take credit on capital goods while using the capital goods used or intend to be used for wholly business purpose
Credit of Input Tax will be available in totality where Capital Goods have been used for effecting taxable supplies and business activity without any restrictions
Registered taxable person shall be eligible to avail ITC credited to the e-credit ledger subject to condition prescribed without restrictions.
11 June 2017
As per the capital good definition , whatever i do not capitalize is not a capital good .so everyone will book capital purchases as revenue expenditure .if they do so it will contradict As ? This is my doubt
13 June 2017
As like current scenario there is no limit on claiming Input credit on Capital goods 50:50 ratio and booking capital expenses as revenue is not possible since there are lot of other issues in various act & audits and also there is no benefit they get booking capital goods to revenue
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