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/-
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
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
CAclubindia
