Saurabh Jain (62 Points)
26 January 2018
DHARMESH BABUBHAI MISTRY
(consultant)
(1435 Points)
Replied 26 January 2018
The amount of ITC (in full) in respect of the capital goods used or intended to be used exclusively for effecting taxable supplies including zero-rated supplies shall be credited to the electronic credit ledger. (For Business Purpose).
ITC in case of capital goods used commonly for exempt and taxable supplies and/or business and non-business purposes. then it spread over 5 years life of the asset.
ITC on Capital Goods available as under:
(1) Capital Goods used only for personal use & exempted sales - NO ITC
(2) Capital Goods used only Normal Taxable sales - ITC allowed
(3) Capital Goods used Partly for Personal/Exempted and Party for Normal sales - Calculate proportionate ITC
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