what is the procedure to claim of ITC on capital goods purchase for furtherence of bussiness.
1. if that ITC can be claimed in full r 50%?
2. What is the procedure to claim- propotionate r in full ,pls explain
If ITC is used for furtherance of business then ITC can be claimed in full but if it is used partly for personal and for sales then proportionate ITC can be claimed.
Common credit for partly personal/ exempted and partly normal sales
The ITC paid for the capital goods will be credited to electronic credit ledger
Useful life of such capital asset will be taken as 5 years from the date of purchase
Now the total amount of input tax credited to electronic credit ledger for the whole useful life will be distributed over the useful life
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