We are a software service provider, please let me know we are eligible to claim ITC on Bank charges...?
Bank charges for Foreign remittance and other Bank charges...
Thank you Vijith T K
Replies (4)
Quick Summary
This discussion explores whether software service providers can claim Input Tax Credit (ITC) on bank charges, specifically for foreign remittances. While some suggest it's claimable as a common input, others point out that GST may not apply or that reversals are needed for exempted turnover. The consensus leans towards eligibility, with a note to reverse ITC proportionally if exempted services are involved.
In my knowledge, Yes, you can avail as common input. If there is any exempted turnover, has to reverse the ITC availed on such transactions proportionately periodically.