UTILIZATION ITC ON CAPITAL GOODS
This query is : Resolved
Quick Summary
17 February 2020
TAX ON SALES ---- 1,00,000
Less: input tax(inputs)- 40,000
itc(capital goods)- 60,000
-------------
NET LIABILITY -NIL-
--------------
MY DOUBTS WAS WHETER I CAN TAKE WHOLE ITC ON CAPITAL GOODS i.e. Rs. 60,000/- OR Only Rs. 1,000 (60,000/60 months). and pay remauning Net Tax Liablity Rs.59,000/-
pls Clarify.
Less: input tax(inputs)- 40,000
itc(capital goods)- 60,000
-------------
NET LIABILITY -NIL-
--------------
MY DOUBTS WAS WHETER I CAN TAKE WHOLE ITC ON CAPITAL GOODS i.e. Rs. 60,000/- OR Only Rs. 1,000 (60,000/60 months). and pay remauning Net Tax Liablity Rs.59,000/-
pls Clarify.
17 February 2020
It depends when you had purchased that Capital Good. The useful life of Capital Good for the purpose of ITC claim is 60 months,
For example, if you had purchase capital good 36 months ( 3 years ) before. The balance useful life of the asset is 24 months.
You need to reverse ITC - (60000/60) * 24 = 24000/-. ( You must have already availed ITC 60000/- at the time of purchase of capital goods. Now you need to reverse 24000/- at the time of sale of thatcapital goods
For example, if you had purchase capital good 36 months ( 3 years ) before. The balance useful life of the asset is 24 months.
You need to reverse ITC - (60000/60) * 24 = 24000/-. ( You must have already availed ITC 60000/- at the time of purchase of capital goods. Now you need to reverse 24000/- at the time of sale of thatcapital goods
17 February 2020
yes take full itc at the time of purchase and if sold in future 5 years you have to reverse the itc as per gst rules.
17 February 2020
Thank u for ur reply...actually itc was on construction ice plant. i have claimed the itc portion on plant & machinery only, which was accumulated monthly as per gstr-3b returns., becoz there is no sale due to factory under construction. the sale activity begins in this month.the accumulated itc was around 15 lacs. can i use all this itc for payment of output tax untill all the accumulated itc get exhausted or I will utilize only 1/60 portion for each month and balance paid in cash
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reopen of assessment proceeding
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Management System (IMS)
- FTS Taxable under 115A
- Experts need help
- Gift Received from nonblood relative
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
