{"id":45461,"date":"2024-04-15T21:58:21","date_gmt":"2024-04-15T21:58:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=45461"},"modified":"2024-04-15T21:58:21","modified_gmt":"2024-04-15T21:58:21","slug":"whether-depreciation-on-tax-component-of-capital-goods-and-plant-and-machinery-and-whether-input-tax-credit-itc-is-permissible","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/whether-depreciation-on-tax-component-of-capital-goods-and-plant-and-machinery-and-whether-input-tax-credit-itc-is-permissible\/","title":{"rendered":"Whether depreciation on tax component of capital goods and Plant and Machinery and whether input tax credit (ITC) is Permissible?"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9770e1c77fd\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Yes                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    No                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Input tax credit is eligible if depreciation on tax component is not availed                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is A. Depreciation on the tax component of capital goods and plant and machinery is permissible.<\/p>\n<p>The tax component of capital goods <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> and plant and machinery is the amount of tax paid on the purchase of the asset. This amount can be depreciated over the useful life of the asset. The depreciation amount is allowed as a deduction in the computation of taxable income.<\/p>\n<p>Input tax credit (ITC) is the amount of tax paid on inputs used in the manufacture of goods or services. This amount can be claimed as a credit against the output tax liability.<\/p>\n<p>The ITC on the <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> tax component of capital goods and plant and machinery is not allowed. This is because the tax component is not an input used in the manufacture of goods or services.<\/p>\n<p>However, the ITC on the remaining amount of the purchase price of the asset is allowed. This is because the remaining amount is an input used in the manufacture of goods or services.<\/p>\n<p>The following are the options for the question:<\/p>\n<p>A. Yes. Depreciation on the tax component of capital goods and plant and machinery is permissible.<br \/>\nB. No. Depreciation on the tax component of capital goods and plant and machinery is not permissible.<br \/>\nC. Input tax credit is eligible if depreciation on tax component is not availed.<br \/>\nD. None of the above.<\/p>\n<p>Option A is the correct answer. Option B is incorrect because depreciation on the tax component of capital goods and plant and machinery is permissible. Option C is incorrect because the ITC on the tax component of capital goods and plant and machinery is not allowed. Option D is incorrect because one of the options is correct.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[969],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Whether depreciation on tax component of capital goods and Plant and Machinery and whether input tax credit (ITC) is Permissible?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/whether-depreciation-on-tax-component-of-capital-goods-and-plant-and-machinery-and-whether-input-tax-credit-itc-is-permissible\/\" \/>\n<meta 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