Input tax credit eligible for led lights to be installed at warehouse/ yard / factory shed / shop

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15 Points Posted on 30 December 2018

Hello Everyone

I am an accountant and have a query here.

My Client has a warehouse and he has recently purchased LED lights to replace the old Lights.

Can he avail the ITC for the amount of GST paid and also the depreciation on the  NET value.

Thanks in Advance

Sushil

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On 30 December 2018 at 19:52 Report
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6 Points Posted on 30 December 2018
No , he can claim ITC on the amount of GST OR he can claim depreciation on the net amount.
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On 30 December 2018 at 20:27
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GST Practitioner
55067 Points Posted on 30 December 2018
As per Section 16(3): if depreciation is claim on Tax Amount (GST Amount) then can't claim ITC

Depreciation can be charge on before the value of GST (Taxable value)
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On 30 December 2018 at 21:29
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CA Final student
7106 Points Posted on 30 December 2018
no he can claim either ITC or deprecation on gst paid.
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On 30 December 2018 at 22:14
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15 Points Posted on 01 January 2019

Happy New year and thanks for your responses

what i have understood is

If Taxable Value is 10000 + GST @ 12% (as is the case of LED lights)  total purchase value = Rs.11200/-

From This Rs.10,000 is debited to Asset, Rs.1200/- can be claimed as ITC

and depreciation is calculated on Rs.10,000/-

Please correct me if I am Wrong

Thanks in Advance

Sushil

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On 01 January 2019 at 19:07
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Specialized in Indirect Taxes
6831 Points Posted on 06 January 2019

Yes can be done

 

1 Reply
On 06 January 2019 at 18:34

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