The doubt is in case of capital asset for Rs.1 lac+ GST Rs.18000/-, capitalised in2018-19 for Rs.1 lac for which depreciation is claimed and Rs.18000/- taken to current asset as Input Tax receivable.
We have decided to reverse the ITC of Rs.18000/- as per GST rule 43 (itc reversal for capital goods) in 2019-20 to the asset account. Whether we have to take the entire amount of Rs.18000/- to the asset account and claim deprecaition for the same or we have to take Rs.18000/- as addition and take the depreciation of Rs.1800/-( @ 10%) to prior period expenses and reduce the opening WDV to Rs90000+16800/- and show accordingly. Please also advise how the same to be shown for calculating the depreciation allowable as per rules for the year 2019-20, since the addition of Rs.18000/- pertains to the year 2018-19.
CAclubindia
