INPUT TAKEN FOR ASSETS PURCHASED AND REVERSAL UNDER RULE 43

This query is : Resolved

(Querist)
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19 January 2022 We have partly exempted and partly taxable sale of goods and services
we have purhcased capital assets during dec21

now rule 43 apply

so we can taken all inputs of capital assets during the dec21 3b OR taken only upto dec21 taxable supply ratio.

as per rule 43 in next 59 months (divided capital assets input in 60 instalment ) and reversed each instalment
in the ratio of exempted supply in respective month

interest will also payble upto 59 month for reversal @18% PA showing in outpux tax liability

please guide us
Thanks in advance
regards
RAJEEV KOOLWAL

CA Akshay Hiregange

CA Akshay Hiregange (Expert)
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01 February 2022 Yes your understanding is right. Although, interest can be disputed if ITC balance is available. Even in recent budget interest section 50(3) has been amended to be applicable when ITC is availed and utilised only.