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ITC on capital goods and period for avail credit
as today if I purchase machinery (CG), for taxable supply, can I avail full ITC for that? it has time limit to avail that credit? pls explain in details...
Replies (5)
yes it is. you can take full credit if your output does not include any tax free goods. but if you sale or dospose the capgoods you have write back the itc a part. it is clearly written in the rule.
You have to avail ITC in 5 years
No sir. 5 yrs will be considered if the cap goods used for taxable supply and exempted/personal use both at the same time.
thank you.
thank you.
If you are using capital goods for exempted supply or personal use then you have to reverse complete input , And if you use that CG for taxable supply then you have to assume usefull life of that CG is 5 year , And you have to distribute ITC in 5 parts for 5 year
thanks both of you.
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