Question 11 - Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?
Input tax credit disallowance where depreciation is claimed on the tax component of capital goods cost. Input tax credit shall not be allowed on the tax component of the cost of capital goods in respect of which a registered taxable person has claimed depreciation; the disallowance applies specifically to the tax element for which depreciation has been availed, while other eligible input tax credits remain unaffected.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit disallowance where depreciation is claimed on the tax component of capital goods cost.
Input tax credit shall not be allowed on the tax component of the cost of capital goods in respect of which a registered taxable person has claimed depreciation; the disallowance applies specifically to the tax element for which depreciation has been availed, while other eligible input tax credits remain unaffected.
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