21 February 2019
if we are providing taxable services as well as exempt services, How to determine the credit attributable to exempt supplies. please let me know the formula of proportionate ?
21 February 2019
Hi, First Identify the Credit in the following Manner. > Credit Attributable to Taxable Supplies.(Eligible to Avail Credit) > Credit Attributable to Exempt Supplies (Not Eligible to Avail Credit) > Remaining is Common Credit (Contains both Eligible & Non eligible Credit)
in this 3 rd case apply below formula to know Eligible Credit
ITC of Exempted Supplies = (Exempted Turnover/Total turnover)* Common Credit
The above formula will help to get ITC related to Exempted supplies.
> From the total Common credit above credit is reduced.
Then, the remaining available credit is Eligible to Avail.
CAclubindia
