Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Audit fees ITC

03 September 2020

Can i claim full ITC on audit fees if i am dealing in taxable and exempt goods. If yes than help me out with the section or provide helpful revert.

Reply
Follow
Share

3 Replies

deepak v (43 Points)
Replied 03 September 2020

ITC would be classified as common credit, of whose eligible portion of eligible ITC needs to be worked out by dividing taxable turnover by total turnover.
refer section 17(2) and rule 42

Taha (T) (405 Points)
Replied 03 September 2020

If u can apportion the itc as per turnover of taxable and exempt then first take full credit then reverse the amount of credit apportioned for exempt supply