Input on capital goods

Can i claim itc on capital good purchase. If no then what is the procedure for claiming depreciation on it
Replies (4)
Quick Summary
This discussion clarifies the process of claiming Input Tax Credit (ITC) on capital goods. You can claim ITC if it's not restricted, capitalising only the taxable value for depreciation. Alternatively, if you don't claim ITC, you capitalise the full invoice value. ITC on capital goods is claimed at once, but depreciation is charged on the reduced value after ITC is deducted.

You can claim ITC for capital goods purchased provided it is not restricted u/s 17(5). If you do claim ITC then you have to capitalise just the Taxable Value and claim depreciation on the same.

If you decide not to claim ITC then capitalise the entire invoice value and claim depreciation on the same.

ITC can be availed on capital goods at once (100%) 

Important Note : Depreciation shall be charged on reduced value (i.e., Cost - ITC claimed) 

@ Mr Ankit Shah.,

Yes... You can claim ITC for the purchase of Capital Goods...

Depreciation on the basic value of the goods...

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