Tcs claim

486 views 2 replies
User Avatar

47 Points Joined August 2019
tcs paid on purchase of vehicle can we capitalise or not? also it is part of cost of fixed assets or not?
0 Reply Share Follow
On 06 December 2024 at 11:24 Report
Replies (2)
User Avatar

Master in Accounts & high court Advocate
9487 Points Joined December 2011

TCS (Tax Collected at Source) paid on the purchase of a vehicle can be capitalized as part of the cost of the fixed asset.

 Capitalization of TCS As per the Income-tax Act, 1961, TCS paid on the purchase of a vehicle can be capitalized as part of the cost of the vehicle.

 Accounting Treatment In the books of accounts, the TCS paid on the purchase of a vehicle can be accounted for as follows:

1. _Debit_: Fixed Asset (Vehicle) account (including the TCS amount) 2. _Credit_: Bank/Cash account Disclosure in Financial Statements

The TCS paid on the purchase of a vehicle should be disclosed as part of the cost of the fixed asset in the financial statements.

GST Implications As per GST laws, TCS paid on the purchase of a vehicle is not eligible for input tax credit (ITC).

 However, the TCS amount can be capitalized as part of the cost of the vehicle. Conclusion In conclusion, TCS paid on the purchase of a vehicle can be capitalized as part of the cost of the fixed asset.

It should be accounted for as a debit to the Fixed Asset (Vehicle) account and disclosed as part of the cost of the fixed asset in the financial statements.

Reply
On 06 December 2024 at 12:21
User Avatar

SEO Sai Gr. Hosp.
208750 Points Joined July 2016

No. You can claim it back while filing IT return, so cannot be capitallized.

Reply
On 06 December 2024 at 12:25


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading