Dear Members
We purchased a Machinery from China, which will be used in manufacture of our End product.
My query is if we can claim ITC on the IGST amount paid on the same or not? in both the cases please tell me the accounting as well as taxation treatment of the same.
Summary: You are eligible to claim ITC on IGST paid for imported machinery used for business, provided you do not claim depreciation on that tax component. If you choose to claim ITC, record the IGST separately from the machinery's cost; otherwise, you may capitalize the tax and claim depreciation on it.
A R JADHAV AND ASSOCIATES
Mumbai
CA Inter
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