TaxTMI 
TaxTMI 
TaxTMI 
ITC reversal for Second hand plant and machinery purchased
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....TC reversal for Second hand plant and machinery purchased<br> Query (Issue) Started By: - Ramanathan Seshan Dated:- 10-3-2025 Last Reply Date:- 13-3-2025 Goods and Services Tax - GST<br>Got 2 Replies<....
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....br>GST<br>Dear Experts, Hope this message finds you well. I am seeking clarification regarding the application of 18(6) in the context of a transaction between Company A and Company B. Here's the sc....
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....enario: Company A purchases machinery from Company B and which had been used by Company B for three years. At the time of sale, Company B reversed the Input Tax Credit (ITC) since it had availed it d....
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....uring the time of purchasing the machinery. After Company A purchased the machinery, it availed and utilized the ITC. Subsequently sold the asset after two years at a 5% margin on the book value as ....
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....of the date of sale. With reference to the above, I would like to understand the following: a) Would the 18(6) reversal be applicable in this case? Best Regards, S Ram Reply By Shilpi Jain: The R....
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....eply: Yes 18(6) will apply as the time of 5 years is from the date of invoice. Though pls note that 18(6) is not a reversal provision but a provision to ascertain tax liability in case of sale of cap....
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....ital goods on which ITC is taken Reply By Ramanathan Seshan: The Reply: Thanks Shilpi mam<br> Discussion Forum - Knowledge Sharing ....