ITC CLAIM ON CAPITAL GOODS FOR SUPPLY OF TAXABLE GOODS

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This query is : Resolved

Quick Summary

Businesses supplying taxable goods can claim the full Input Tax Credit (ITC) on capital goods in the month of purchase. There are no restrictions on utilising or setting off the entire ITC amount against tax liabilities in the first month itself.

Sunil Patnaik

Sunil Patnaik (Querist)

16 February 2023 Can I claim fully (One Installment) Input Tax Credit on purchase of Capital Goods where the business is completely involved in supply of taxable goods ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 February 2023 Yes, eligible.

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CA Altamush Zafar

CA Altamush Zafar (Expert)

16 February 2023 Yes you can take ITC on capital goods fully in the month of purchase itself

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Sunil Patnaik

Sunil Patnaik (Querist)

17 February 2023 Thank you Sir for valuable time...I have one more query is that, is there any restrictions for utilize or setoff whole ITC amount towards payments of tax liabilities ?

CA Altamush Zafar

CA Altamush Zafar (Expert)

17 February 2023 There is no restriction. You can setoff in the first month itself

Message likes : 1 times

Sunil Patnaik

Sunil Patnaik (Querist)

17 February 2023 Thanks You sir for your valuable response.

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