Accounting treatment of taxes on fixed assets

Hello Everyone,

This question is regarding addition of an asset which was done in PY 2017-18. At the time of capitalization of asset, GST on the transaction was parked in GST receivable (assuming credit will be received)  and basic amount was capitalized.

Now it is realized that credit will not be available on the transaction hence it is required to dispose those receivable. Question is should it be capitalized to asset or charged to P&L. Please explain logic for the treatment.

Replies (4)
capitalize to asset, as it's a part of the cost of asset acquired. if one is claiming ITC on GST paid then no depreciation can be claimed, otherwise yes
Just to inform, both purchase and capitalisation of gst are in two different periods
how can this be.
asset was purchased in 17-18, basic was capitalised. GST parked in receivable.
now in 18-19, it is realised that CR is not available hence it has been capitalised

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