03 April 2022
A Company is engaged in trading of exempted goods and also providing services(Cold Store). The service component includes both taxable and exempted supply.
Now company is having single registration and the company is not availing any input credit at all.
Exempted Sales. - Rs.75 Services: Taxable Service. - Rs.15 Exempted Service - Rs.10 --------- Rs.25 Total Turnover Rs.100
Input credit on common expenses like Bank charges, Audit fees will be allowed in the proportion of Taxable supply to total turnover i.e., 15/100
There are certain input credits on expenses exclusively used for provision of services. My query is:
1. Whether eligible input credit on Services can be calculated in the proportion of Taxable Service to Total service value i.e., 15/25?
2. Or this also has to be calculated in the same manner like input credit on common expenses i.e., 15/100?
CAclubindia
