ITC FOR ASSETS
Gauri Shanker Lal Srivastav (218 Points)
22 June 2018
What happens if one starts using an asset for exempt goods also for taxable goods?
1 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 22 June 2018
has to reverse ITC avail on capital goods on monthly basis the ITC attribute to exempted supply
Use following formula for same
1. Calculate monthly credit - ITC on capital ÷ 60, say C
2. Calculate ITC attributable to exempt supply -
C x Exempt Supply ÷ Total Supply for the month
3. Reverse the same for every month
4. Pay interest as well 😂
Check rule 43(c)
Use following formula for same
1. Calculate monthly credit - ITC on capital ÷ 60, say C
2. Calculate ITC attributable to exempt supply -
C x Exempt Supply ÷ Total Supply for the month
3. Reverse the same for every month
4. Pay interest as well 😂
Check rule 43(c)
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
