ITC & Depreciation on Assets

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Jittu (Querist)
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24 September 2023 As an advertising company, we have purchased raw materials on GST Tax Invoice and incurred labour charges for construction of a display hoarding which allows me generate monthly rental income from it. Now the confusion is that I have already claimed ITC on purchase of raw materials for the construction and developed this asset i.e. display hoarding, so can I claim year on year depreciation on this asset?

RAJA P M

RAJA P M (Expert)
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25 September 2023 Already You claim ITC, then the question can't arise.

RAJA P M

RAJA P M (Expert)
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25 September 2023 Yes, You Can claim depreciation as per applicable value

Jittu

Jittu (Querist)
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25 September 2023 Can you please explain in detail? In first answer, you said, that when ITC has already been claimed, then the question can't arise. What does that mean? What I could understand is if I have already claimed ITC, I cannot claim depreciation. Is my understanding correct?

But then in the second answer, you said that I can claim depreciation on applicable value?

Both these answers contradict each other. Can you please give better explanation for my understanding.

Thankyou in advance.

RAJA P M

RAJA P M (Expert)
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26 September 2023 RAJA P M • 25 September 2023 Yes, You Can claim depreciation as per applicable value. (Construction then it will account in asset. so only I replied in first answer...)

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
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28 September 2023 DEPRECIATION CAN'T BE CLAIMED ON AMOUNT OF ITC AVAILED. ON REST OF AMOUNT DEPRECIATION CAN BE CLAIMED SUBJECT TO PROVISIONS OF INCOME TAX ACT.

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