Right now we have studied that
ITC is available not only of Purchases
but actually it is available of different expenses and fixed assets also
There are 3 types of ITC
- Inputs
- Capital Goods
- Input Service
What are Inputs
Tax on goods Purchased is called Inputs
These goods may be for
Purchase of goods for sale by Shopkeeper )
or
Purchased for Use (Example -Stationary)
What are Capital Goods
It means those goods which are capitalized in books (treated as Fixed assets)
These are intended to be used for more than 1 Year
Example -Machine, Computer
What are Input Services
It means Purchase of Various services like telephone ,internet etc
Question
A Company made following expenses
Purchase of Goods 40000+2000 GST
Laptop Purchased 50000+6000 GST
Office files Purchased 2000+1000 GST
Audit Fees =50000+9000 GST
Sale of Goods= 100000+5000 GST
What is ITC of Inputs, Capital Goods and Input Services
View AnswerOutput GST 5000
ITC on
Inputs 3000
Capital Goods 6000
Input Services 9000
Total ITC 18000
GST Payable 0
GST Credit (Closing ITC) 13000
