input credite on capital goods

[krishan sharma]

dear sir

i have a quiry that if a customer purchased a capital good like machine and paod consideration 120000 inwitch include 12000 vat amount then he avialed the vat inpute and setteled as per requirement of law (1/3) in witch my quiry that is he elisible for charge on depreciation  on 12000 or not  and further in case he is not availed the input credite then he can it plaese provide the reaion ble solution with exmaple

[YAGAY andSUN]

Dear Krishan,

Depreciation and CENVAT credit cannot be charged/availed simultaneously on the Capital Goods.

Regards,

 

Pradeep Khatri

[NEERAJ KUMAR, RANCHI]

your query is difficult to understand. Try to put it more simple and in better way. Is your query related to central excise or what?

AI Summary

Depreciation and input tax credit cannot be claimed simultaneously on capital goods, per advisory response. The advisory establishes that depreciation and CENVAT/input tax credit cannot be charged or availed simultaneously on capital goods; the query described a machine purchase including tax and queried whether the tax component could be depreciated when input credit was availed or when it was not, but no ruling was provided for the latter scenario.