Mr X purchases a machine with ITC OF Rs 1000.
Output Tax Liability-900
I want to know whether ITC On capital goods can be availed fully at once or not.
for above example Can I claim full 900 from 1000 balance or not
Credits for capital goods are available in full.
There is no provision stipulating availment of capital goods credit in instalment or tranches.
Further, if the tax payer claims depreciation of the tax component in the value of capital goods under the provisions of Income Tax Act, then credit is not allowed on such tax component of capital goods.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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