Interest on itc reversal

This query is : Resolved

Birender Singh (Querist)
Follow

22 October 2020
We have taken wrong itc of hotel 60000 but after 2 month we have reversed the same.
During this period we have excess itc credit approx 20000 in credit ledger which was not utilised .and cash ledger credit approx 35000 which was not utilised.
So pls advise whether we have to pay interest on 5000 only or 60000 ?

Lekhraj sood

Lekhraj sood (Expert)
Follow

22 October 2020 You have to pay the interest to the extent of utilisation of wrong credit availed.

Birender Singh

Birender Singh (Querist)
Follow

22 October 2020 Thanks.
Can we adjust cash ledger balance amount at the time calculating interest?

Lekhraj sood

Lekhraj sood (Expert)
Follow

22 October 2020 No, you can not adjust.

Birender Singh

Birender Singh (Querist)
Follow

22 October 2020 Thanks sir.
Can we pay interest amount from cash ledger balance instead of paying from bank.?

Lekhraj sood

Lekhraj sood (Expert)
Follow

22 October 2020 Yes , of course you can use cash ledger balance for paying interest.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Hemkumar

AJAY Kumar Agrawal

Rajasekar

CA Narender Yarragorla

Hitesh Desai

Subscribe Now

Interest on itc reversal

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA