Kindly clarify whether the crushed stones,pebbles and gravels are considered as capital goods if purchased in bulk by work contractor?
Thanks in advance.
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***Capital Goods***
Replies (8)
These are not capital goods , these are basically stock.
Even if purchased in bulk they'll be used for operation therefore to be treated as stock
It is only an asset of ur firm.
For you it will be stock since you deal in it. Whereas for your customer it might be capital goods if he is capitalizing the same.
Items used for daily operations is in the nature of current asset more precisely.
Is it for resale or for use ?
Can the work contractor claim ITC on these goods in gst?
If these are used for providing taxable services then ITC can be claimed.
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