INPUT TAKEN FOR ASSETS PURCHASED AND REVERSAL UNDER RULE 43
This query is : Resolved
19 January 2022
We have partly exempted and partly taxable sale of goods and services
we have purhcased capital assets during dec21
now rule 43 apply
so we can taken all inputs of capital assets during the dec21 3b OR taken only upto dec21 taxable supply ratio.
as per rule 43 in next 59 months (divided capital assets input in 60 instalment ) and reversed each instalment
in the ratio of exempted supply in respective month
interest will also payble upto 59 month for reversal @18% PA showing in outpux tax liability
please guide us
Thanks in advance
regards
RAJEEV KOOLWAL
we have purhcased capital assets during dec21
now rule 43 apply
so we can taken all inputs of capital assets during the dec21 3b OR taken only upto dec21 taxable supply ratio.
as per rule 43 in next 59 months (divided capital assets input in 60 instalment ) and reversed each instalment
in the ratio of exempted supply in respective month
interest will also payble upto 59 month for reversal @18% PA showing in outpux tax liability
please guide us
Thanks in advance
regards
RAJEEV KOOLWAL
CA Akshay Hiregange
(Expert)
01 February 2022
Yes your understanding is right. Although, interest can be disputed if ITC balance is available. Even in recent budget interest section 50(3) has been amended to be applicable when ITC is availed and utilised only.
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