Supply - Disposal

Schedule I states that permanent disposal of assets even if made without consideration has to be treated as supply where ITC has been availed on such assets. This means that even writing off of capital goods will be treated as a taxable event. According to Schedule II the following conditions should be satisfied for sale of capital goods to be a taxable event 1)goods should form part of business assets 2) the goods no longer form part of business. 3) goods are transferred under the instructions of the person carrying on the business. (Hence in case of calamity like fire, accident, theft there will be no liability to pay tax.

Sudha Reddy

CA Final

★ 20K+

10-Sep-20 10:48

Hello team,The asset of which i am disposing, if i have already availed ITC credit and the value of disposing item is no value. Here i am not able to understand the transaction read the given above content but still i am not clear

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

10-Sep-20 11:02

Even it is of no value, taxes will be paid.

CA Suraj Lakhotia

Admin

10-Sep-20 11:06

K. Thank you.

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

10-Sep-20 11:15

In such we do the valuation as per valuation rules ð???

Shiva Teja

Faculty

10-Sep-20 11:44

Yes right

Shiva Teja

Faculty

10-Sep-20 13:00

Thank you sir.

Thread Starter

ILLURU VISWESHWARA REDDY

CMA_US All

★ 33K+

10-Sep-20 13:20