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rules for claim of ITC and depreciation in income tax
X is a contractor and he registered under GST. Now he purchased a JCB for his works on which he paid GST at time of purchase. Can he avail GST paid as input and which value of vehicle (net price or gross with GST) will be taken in income tax for depreaciation purpose.
Replies (6)
Take basic value to Asset head and Provide depreciation for the Basic value...
Take ITC in GST for the Tax Value...
Take ITC in GST for the Tax Value...
PLEASE EXPLAIN WITH EXAMPLE (If Possible)
| Originally posted by : Dilip Kumar | ||
 |
PLEASE EXPLAIN WITH EXAMPLE (If Possible) |  |
Yeah Definitely Possible... Then Why we are participate in CCI...
Say A machinery Purchased from ABC & Co Rs. 11,800 with GST (Basic Value Rs. 10000 & GST Value Rs. 1800). Now You will enter in Your books of Accounts as Following way...
Create Ledgers as ;
Machinery (Under Fixed Asset)
CGST & SGST / IGST (under Duties & Taxes)
Entry as;
Dr. Machinery - Rs. 10000
Dr. CGST - Rs. 900
Dr. SGST - Rs. 900
Cr. ABC & Co - Rs. 11800.... (Pay to ABC & co Rs. 11800)
Now.,
The CGST & SGST amount is Your ITC under Duties & Taxes. You can avail the amount in Your GST returns...
As per IT Act you can claim Depreciation on Machinery for the Value of Rs. 10,000...
| Originally posted by : RAJA P M | ||
|
Say A machinery Purchased from ABC & Co Rs. 11,800 with GST (Basic Value Rs. 10000 & GST Value Rs. 1800). Now You will enter in Your books of Accounts as Following way... Create Ledgers as ; Machinery (Under Fixed Asset) CGST & SGST / IGST (under Duties & Taxes) Entry as; Dr. Machinery - Rs. 10000 Dr. CGST - Rs. 900 Dr. SGST - Rs. 900 Cr. ABC & Co - Rs. 11800.... (Pay to ABC & co Rs. 11800) Now., The CGST & SGST amount is Your ITC under Duties & Taxes. You can avail the amount in Your GST returns... As per IT Act you can claim Depreciation on Machinery for the Value of Rs. 10,000... |
|
thanks
| Originally posted by : Dilip Kumar | ||
|
thanks | |
U R Wlcm
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