ITC related reg

A registered dealer purchased the P&M.

Can he avail ITC as wel as depreciation while computing output tax liabilities.

pl explain., experts
Replies (4)
Quick Summary
This discussion clarifies whether a registered dealer can claim both Input Tax Credit (ITC) and depreciation on purchased plant and machinery when calculating output tax liabilities. The consensus is that you cannot claim both benefits simultaneously. If you claim ITC on the tax component, you must forgo depreciation on that portion. Conversely, if you choose not to avail ITC, depreciation can be claimed on the full cost, including the tax.

No depreciation can be claimed to the extent of ITC availed. If ITC is not availed, then depreciation can be claimed on the total cost including tax.
Thank you,
Agree with poornima
You can't take dual benefit. you want ITC then you have to forgo depreciation on ITC part.

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