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ITC ON CAPITAL GOODS
Should I pay tax while I sell my capital goods purchased in VAT regime where ITC was claimed?
Replies (8)
Yes you have to pay tax..
relevant section pls?
entry 1 of schedule I with section 7 of CGST
ok..there it is mentioned where input tax credit has been availed...
now ITC as defined in section 2(63) is credit of input tax.
as per section 2(62) input tax is CGST/SGST/IGST. If that is the case how can the credit of VAT be considered as ITC for the purpose of GST
now ITC as defined in section 2(63) is credit of input tax.
as per section 2(62) input tax is CGST/SGST/IGST. If that is the case how can the credit of VAT be considered as ITC for the purpose of GST
If we go as per strict interpretation, you are right but here intention is if any tax credit is taken earlier, it is taxable. If we consider your view, still it is taxable as sale of business asset fall in definition of supply and tax be levied on transaction value.
ok.. TAXABILITY will be there on the transaction value..however there will be no question of ITC reversal right?
Yes than no question of reversal. Check section 18(6)
okay..thank U for the clarification
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