Which year turnover to be considered for calculating Available ITC on Capital Goods when Machinery used for both exempt and taxable supply.
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Quick Summary
This discussion clarifies how to calculate the Input Tax Credit (ITC) on capital goods when they are used for both exempt and taxable supplies. The key question is determining the correct period for calculation. The consensus is that ITC is calculated from the month of purchase of the capital goods, even if they are subsequently used for exempted supplies.