ITC reversal

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9 Points Posted on 16 May 2020
How to calculate ITC reversal
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On 16 May 2020 at 09:03 Report
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Quick Summary
This discussion explains how to reverse Input Tax Credit (ITC) if it was wrongly claimed. You can correct the entry in the following month by reducing your input. Reversal can be done based on the ratio of taxable and exempted turnover, or the entire amount must be reversed if it relates to blocked credits.

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Finance/Compliance Consultant
69623 Points Posted on 16 May 2020
If the input tax credit is wrongly claimed, then it should be reversed by making payment to that extent next month.
2 Reply
On 16 May 2020 at 11:55
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5 Points Posted on 16 May 2020
You can reverse the entry in next month by reducing your input
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On 16 May 2020 at 12:33
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CA-PRACTICE
400 Points Posted on 17 May 2020
1.ITC reversed based on the basis of Taxable and extempted turoner ratio.i.e exemted turnover/ Total turnover.
2. if it is related to blocked credits whole amount should be reversed.
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On 17 May 2020 at 01:57

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