banner_ad

Tcs claim

820 views 2 replies
tcs paid on purchase of vehicle can we capitalise or not? also it is part of cost of fixed assets or not?
Replies (2)

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.

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


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details