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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details