TaxTMI 
TaxTMI 
Claim of ITC by a Commercial Photographer
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....laim of ITC by a Commercial Photographer<br> Query (Issue) Started By: - Rajan Atrawalkar Dated:- 13-2-2024 Last Reply Date:- 20-2-2024 Goods and Services Tax - GST<br>Got 8 Replies<br>GST<br>Can a commercial photographer avail ITC of Camera, Lighting System, Computer, Electronic display boards even though they are capitalized? Is there any way out to claim ITC on the same? These are the only inpu....
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....ts used by him in the course of furtherance of business. Reply By Pradeep Reddy: The Reply: ITC of GST paid on these goods can be availed, as long as such GST is not capitalized in the books of accounts along with the taxable value of goods. This is because, ITC and depreciation are mutually exclusive For eg: Taxable value of camera is 1 lakh and GST thereon is 18,000. ITC on GST of 18,000 can ....
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....be availed as long as the value capitalized in the books of accounts is 1 lakh. Reply By Rajan Atrawalkar: The Reply: Actually, my query in relation to New Registration (Sec 18(1)(a) & (b)). Sorry for incomplete drafting the query. Reply By KASTURI SETHI: The Reply: Sh.Rajan Atrawalkar Ji, The condition of 'capitalization' exists even in the scenario of revised query. Reply By Raj....
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....an Atrawalkar: The Reply: Section 18 (1) (a) & (b) says"…… shall be entitled to take credit of input tax in respect of inputs held in stock ….". So, to me, the ITC is available only in respects of Inputs. Thus, the words "capital goods" are missing in (a) and (b) while The words "and Capital goods" are added in 18(1)(C ) & (d). Again , "Inputs", as per section 2(59) "means ....
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....any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business" Summarily, to me, capital goods are categorically excluded for claiming ITC in the case of Registration taken voluntarily or on exceeding prescribed limits. Reply By Pradeep Reddy: The Reply: Sir Sec 18(1)(a) & (b)- applies to availing ITC on goods procured before obtaining re....
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....gistration and lying in stock as on the date of obtaining registration, it is a special provision. Such provision allows availing of ITC of inputs held in stock as on the date of registration, however, it does not allow ITC on capital goods ( meaning those goods capitalized in books of accounts) held as on the date of registration. Therefore, ITC on capital goods held by the taxpayer as on the da....
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....te of registration (i.e. procured before the registration date) cannot be availed. In other words, such ITC on capital goods can be availed only if they are procured after obtaining GST registration. Reply By KASTURI SETHI: The Reply: Although the following case pertains to pre-GST era, yet it is worth reading. "Inputs capitalized in balance sheet for income tax purpose would not mean the....
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....y will be considered as capital goods for central excise duty purposes - It was more so as no depreciation was claimed on capitalized inputs - Rule 3 of Cenvat Credit Rules, 2004 - Section 35F of Central Excise Act, 1944. [para 2]. "-------------------- CESTAT Ahmedabad reported as in the case of Shree Rama Multi-Tech Ltd. Vs. CCE - 2008 (9) TMI 750 - CESTAT, AHMEDABAD Reply By Shilpi Jain: ....
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....The Reply: Provisions under GST are clear that CG means those which are capitalised in the books. If these were purchased in the recent past you could consider not capitalising them to avail credit. Though concurrence of your auditor will also be of utmost importance. Reply By Padmanathan Kollengode: The Reply: Learned Shilpi Ma'am, In most cases, it will be litigious under Income Tax law ....
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....to take such a position.<br> Discussion Forum - Knowledge Sharing ....