ITC Eligibility Calculation
This query is : Resolved
SATHISHKUMAR
(Querist)
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?
CA Altamush Zafar
(Expert)
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Taxation of crypto futures in India Fy 2026- 2027
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
