Hi Friends... i want to know the correct accounting treatment of the following transaction considering the Income Tax Act , Maharashtra Value Aded Tax, AS-10 on Accounting for Fixed Assets ?
Eg. :- Cost of Asset = Rs . 100
Vat on above = Rs. 10
As per VAT Laws, reduction in set-off is Rs. 4 and only Rs. 6 can be claimed as input tax credit
So whether Rs. 4 can be capitalised since the same is not available as credit ?
Please provide the clarification on the above matter...
Thanx and regards
Manoj
CAclubindia
