banner_ad

Depreciation on Vehicle GST effect

733 views 3 replies
Sir/Madam

We purchased a vehicle and claimed ITC on this hence while calculating depreciation GST portion is excluded for income tax purpose

As per companies Act while calculating depreciation

Can I include gst portion to vehicle or exclude

Please advise
Replies (3)
When you are Capitalising an Asset in the books of accounts, you are not including GST in the Cost of an asset , for example when purchase Asset you will pass following entry.

Vehicle A/c Dr
Input CGST A/c Dr
Input SGST A/c Dr
To Trade Creditors A/c Cr
( purchase of an Asset)

So Asset will be under Non Current Asset , and Input GST will be under Current Asset , So in this case you are going to Calculate Depreciation only on Cost of an asset excluding GST .

( As per IND16 we include only taxes that are non refundable in the Cost of an asset while Capitalising it)

Take more Opinion on this.
Yes I agreed with Mr Prasad.

@ Mr Kishore,

You claimed ITC then You can't include the GST in asset.
So, depreciation provide only the addressable value of asset.

I guess GST will not be included in depreciation. My ACCA P6 sir told me this.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details