04 April 2020
Mr. C a registered taxable person, was paying tax at composition scheme upto 30th July. However, w.e.f. 31st July, Mr. C becomes liable to pay tax under regular scheme. Other information: (a) Input as on 30th July for ` 3,54,000 (inclusive of GST paid @18%). (b) Capital goods purchased for ` 5,00,000 (invoice date 22nd April 2017, GST 18%) Find the eligible ITC to Mr. C. Note: Mr. C not availed depreciation on the GST paid on capital goods. Answer: ITC allowed on inputs = ` 54,000 ITC allowed on capital goods ITC on capital gods = 90,000 Less: 5% p.q = - 4,500 = ` 85,500 (` 90,000 x 5% x 1) Total ITC allowed to Mr. C as on 31st July= `1,39,500
My question is here how its 1 quater for use of capital goods. It is to 2 quaters right.
06 April 2020
ITC for Capital Goods should be reduced by Rs 6000 ( 90000*4/60) ( The useful life will be taken as 5 years ie 60 months ) and from April - July is 4 months.
CAclubindia
