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?
Menu
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/-
Recent Topics :
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
- Capital Gains Tax
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
Related Topics :
CAclubindia
