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...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details