RULE 42 Query reversal of common ITC

As per Rul 42 clause (j) which read as under *the amount of credit attributable to non-business purposes if common inputs and input services are used partly for business and partly for non-business purposes, be denoted as ‘D2’, and shall be equal to five per cent. of C2*

Does it means only if i have business and non business usage Or even when i have exempt supply and taxable supply only without any non business supply do i need to work out under this clause.
Meaning thereby do disallowance under this clause to be worked out when there is only exempt supply along with taxable supply.
Replies (7)
No, there should be no disallowance under D2 in that case as per my personal opinion.
Yes you have to reduce 5%(D2) from C2 (Common Credit )
To get get Net eligible Credit C3, D2 (5% ) is to be Deducted , yes if you dont do exempted supply then No need deduct D1 from C2 , but D2 has to be deducted
Sorry for above Reply as i misread your query , the disallowance of 5% is only done if you have Non business supply
But still how can one who is taking ITC on his mobile bill which is being used for both the purpose like business & Non business & Many other such expense which is being used as business & Non business purpose , hence i think in almost every business the D2 has to deducted from common credit C2 but still you think or sure that there is no such expense /inward supplies then no need to deduct d2
so d2 will come only when there is non business used
Yes ,............

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