Treatment of laptop

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Shashank (Querist)
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24 April 2021 Please suggest:-
A person is rendering export of services in relation to software programming opted 44ADA and registered under GST also. Now, the person has been assigned a project to code for MAC (apple operating system) for which Apple laptop is purchased.
Query:- How to treat such purchase as the amount is to collected from the recipient of services. Whether such purchase of laptop will be professional income and can such asset be treated as Fixed Assets at the same time.
How to raise invoice in GST as to whether the amount of laptop be included along with regular monthly invoice of services rendered or no invoice shall be raised for laptop.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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24 April 2021 1) If the consideration in kind (laptop) will be received from the client, then such value is part of the income chargeable to tax under GST and hence to be included while generating monthly invoice.
2) I am not sure whether such transactions can also be considered as part of fixed assets.
3) However, since the assessee is opting for 44ADA, depreciation cannot be claimed separately.

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