B Ltd. a brick manufacturers, purchase a truck for supply of bricks, B ltd. claim full ITC in the same month when it's purchase.
in its books B ltd. treat Truck as Fixed assest and charge Depreciation also.
now my question is capitalisation of truck is correct treatment or not?
capitalisation of truck, elisbile for claim ITC in GST?
Replies (3)
Depreciation cannot be claimed to the extent of ITC. The value of truck excluding GST can be capitalised.
it's mean Sir,
if value of truck is 10,00,000 and ITC claimed on it @ 18% 1,80,0000. now, we will capitalised the truck by 8,20,000 (10,00,000-1,80,000) and depreciation will be charged on 8,20,000
if value of truck is 10,00,000 and ITC claimed on it @ 18% 1,80,0000. now, we will capitalised the truck by 8,20,000 (10,00,000-1,80,000) and depreciation will be charged on 8,20,000
u will charge depreciation on RS 820000/-
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