I Have purchase one machinery for production with the amt of Rs.150000 +7500 (5 % Tax) in Kerala Circle and its tax element has been utilised as credit.
My Querie is how much amount can be treated as Fixed asset. ie, 150000 or 7500 or 157500
pls help me
you will book as cost of Rs.150000.00. and accordingly you will claim depreciation u/s 32 (i)(ii) and additional depreciation u/s 32 (ii).
you can not claim both input tax credit and depreciation on VAT amount paid.
CAclubindia
