Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 30 May 2009
Paying 8% on interest would be an economic catastrophy as credits in all may not be more than 1-2%.
Whether interest is a service is to be decided also before proportinate credit is availed.
abanerji
(81 Points)
Replied 31 May 2009
Yes, 8% is catastrophic I understand. But, as the law stands now (considering the april '08 amendment), is it necessary to reverse proportionate cenvat credit with respect to interest on loans for a bank?
CAclubindia
