Input Tax Credit (ITC) is a mechanism that allows businesses to claim credit for the tax they’ve paid on their purchases. Input Tax Credit in GST ensures that companies are only taxed on the value they add at each stage of the supply chain, not on previous stages of production. By usi...
This includes the value of all standard-rated (GST at 8%) and zero-rated (GST at 0%) supplies but it excludes exempt supplies, out-of-scope supplies and the sale of capital assets. For the purpose of determining your liability for GST registration, the value of exempt supplies that are...
As under the block concept of depreciation, when the lessee sells the capital assets, the sale proceeds including the profits on sale are allowed to be deducted from the block of assets and hence there is no immediate tax on the accounting profits. Also, typically the asset is recorded on ...
The Tribunal observed that the Commissioner did not submit that income tax cases on the capital/revenue distinction should be wholly disregarded and both parties referred to the concept which has evolved in the cases of the mere realisation of an asset in an enterprising way being on capital acco...
If there is input tax to be availed the tax ledgers will show a debit balance. 5. How to create Capital Goods ledger for GST in Tally.ERP 9? Enable GST in the company. In the Ledger Creation screen, ● Create the capital goods ledger under Fixed Assets . ...
Educational institutions are liable to pay GST on RCM for these goods or services – Sponsorship revenues from non-corporate entities Security services from non-corporate entities Sale of capital assets Training, seminars & workshops, for people except for students, faculty, and staff. 8. When ...
Overview on bonds under Section 54EC & Taxation aspects Section 54EC bonds, commonly known as capital gain bonds, are an effective way for investors to save on long-term capital gains (LTCG) tax. If you sell a capital asset like real estate, shares, or other qualifying assets and make a...
Capital goods have been in use for 4 years, 6 month and 15 days. The useful remaining life in months= 5 months ignoring a part of the month Input tax credit taken on such capital goods= C Input tax credit attributable to remaining useful life= C *( 5/60 ) ...
This is populated based on the HSN/SAC code defined in the product masters (Item, Fixed assets, G/L Account etc.). This is a user editable field. This non-editable field displays the Base Amount on which GST percentage is applied. Shows the cumulative GST amount of all components ...
Gst on royalty under rcm(25) Itc credit for raw materials sold as scrap(20) 16(4) time limit(19) Payment of rcm on seniorage charges(16) Non issue of tax invoice by registered gta(16) Gst on supervision charges(15) Itc reversal on fixed assets written off in the books(15) ...