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ITC claim on fixed assets ?
If I take ITC on fixed assets so I can not take depreciation claim on fixed assets ?
Replies (9)
Quick Summary
Yes, as per section 16(3) of the CGST act , where the registered person has claimed depreciation on the tax components of the cost of capital goods and plants and machinery under the provisions of the Income tax act 1961 , then the input tax credit on the said tax components shall not be allowed .
This insertion is being made to negate double credit on fixed assets.
If you take ITC on fixed assets then you cannot claim depreciation on tax amount. Depreciation will still be available on amount of fixed asset excluding GST amount
If You take ITC on fixed assets, than Depreciation is available on amount excluding GST.
If you don't take ITC, than Depreciation is available on full invoice value(i.e incl. GST)
If you don't take ITC, than Depreciation is available on full invoice value(i.e incl. GST)
yes , as per sec 16 of cgst act if you claim ITC on capital goods you cannot claim depreciation.
either ITC or depreciation .
It's not either ITC or depreciation.
If You take ITC on fixed assets, than Depreciation is available on amount excluding GST.
If you don't take ITC, than Depreciation is available on full invoice value(i.e incl. GST)
So, Depreciation is available on both case, but amount on which depreciation available will change
If You take ITC on fixed assets, than Depreciation is available on amount excluding GST.
If you don't take ITC, than Depreciation is available on full invoice value(i.e incl. GST)
So, Depreciation is available on both case, but amount on which depreciation available will change
in brief meaning is same ..
No, People taking its as like..
if ITC taken..
than depreciation all together not available.
that's not a case.
if ITC taken..
than depreciation all together not available.
that's not a case.
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