ACCOUNTING TREATMENT FOR FIXED ASSETS STANDING AT RESIDUAL VALUE

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13 Points Posted on 13 January 2026

Suggest best option for Fixed assets standing at residual value in books of accounts. To be sold as scrap or to be written off.

 

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On 13 January 2026 at 15:53 Report
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Discussion on accounting treatment of fixed assets reaching residual value in books. Options include writing off assets or selling as scrap and booking income. Concern raised about GST ITC reversal u/s 17(5)(h) if assets are written off, depending on asset life and usage.

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172 Points Posted on 13 January 2026

Best practice will be Write off from books and when ever you actually sold book as other income in p&l.

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On 13 January 2026 at 17:27
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13 Points Posted on 13 January 2026

But in that case i have to reverse the ITC claimed pursuant to section 17(5)(h) of the CGST Act, 2017

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On 13 January 2026 at 17:32
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28261 Points Posted on 14 January 2026

Dependingnon the asset. Useful life of asset.

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On 14 January 2026 at 18:38

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