ITC Eligibility Calculation
This query is : Resolved
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?
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?
05 April 2022
Where the inputs can be identified to be exclusively for taxable supplies then take full ITC.
For common ITC claim proportionately
For common ITC claim proportionately
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Loss of interest in PF transfer from EPFO to Trust
- Sale of Mutual Funds In Diffirent Financial Years
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Rent claimed on building given on permissive possession basis
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Error in uploading Form 10BD
- Traces submitting correction statement error
- Residential status of non resident
- ITR 44AD SECTION
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
