Capital goods credit

[manish kumar]

Sir,

An assessee has taken Capital goods credit after one year. Can we allow 100% credit or allow 50% credit or disallow all capital goods credit. Please suggest me with proper authorities .

[KASTURI SETHI]

Restriction of availing credit within one year was for inputs and input services and not for Capital Goods. If you could not take 50 % in first year, in the next year you could take 100%. Case laws can be traced out. We are talking of pre-GST era.

[Ganeshan Kalyani]

I am also of the view, that in case of capital goods credit not taken in the year of purchase, then in the next month 100% credit can be taken.

[DR.MARIAPPAN GOVINDARAJAN]

You can take 100% credit if you did not take 50% in the first year.

AI Summary

Assessee can claim 100% capital goods credit after one year if 50% was not claimed initially, pre-GST rules apply. An assessee inquired about the eligibility to claim capital goods credit after one year, questioning whether 100% credit, 50% credit, or no credit could be allowed. Three respondents clarified that the restriction on availing credit within one year applied to inputs and input services, not capital goods. It was noted that if 50% credit was not claimed in the first year, 100% credit could be claimed in the subsequent year, referencing pre-GST regulations.