https://www.taxtmi.com/forum/issue?id=119425 Where a taxpayer claims depreciation on the tax element of the cost of capital goods and plant and machinery under income tax law, input tax credit on that tax element is disallowed; taxpayers must therefore either claim depreciation (including GST in the depreciable base) and forgo ITC on the tax component, or avail ITC and not claim depreciation on that tax element. Post ruling arguments permit ITC for items qualifying as plant or machinery under a functionality test, but this raises factual and accounting distinctions about capitalisation, movability, and construction related supplies and entails litigation risk. en-us Tue, 26 Nov 2024 11:54:05 +0530 Fri, 24 Jan 2025 10:40:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=119425 Where a taxpayer claims depreciation on the tax element of the cost of capital goods and plant and machinery under income tax law, input tax credit on that tax element is disallowed; taxpayers must therefore either claim depreciation (including GST in the depreciable base) and forgo ITC on the tax component, or avail ITC and not claim depreciation on that tax element. Post ruling arguments permit ITC for items qualifying as plant or machinery under a functionality test, but this raises factual and accounting distinctions about capitalisation, movability, and construction related supplies and entails litigation risk. Discussion-Forum GST Tue, 26 Nov 2024 11:54:05 +0530 https://www.taxtmi.com/forum/issue?id=119425