9911796707
TMI BlogManner of determination of input tax credit in respect of capital goods and reversal thereof in certain casesX X X X Extracts X X X X X X X X Extracts X X X X ..... x credit in respect of capital goods, which attract the provisions of sub-sections (1) and (2) of section 17, being partly used for the purposes of business and partly for other purposes, or partly used for effecting taxable supplies including zero rated supplies and partly for effecting exempt supplies, shall be attributed to the purposes of business or for effecting taxable supplies in the follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e years from the date of invoice for such goods: Provided that where any capital goods earlier covered under clause (a) is subsequently covered under this clause, the value of 'A' shall be arrived at by reducing the input tax at the rate of five percentage points for every quarter or part thereof and the amount 'A' shall be credited to the electronic credit ledger; Explanation: An item of capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m= Tc÷60 (f) the amount of input tax credit, at the beginning of a tax period, on all common capital goods whose useful life remains during the tax period, be denoted as 'Tr' and shall be the aggregate of 'Tm' for all such capital goods. (g) the amount of common credit attributable towards exempted supplies, be denoted as 'Te', and calculated as: Te= (E÷ F) x Tr where, 'E' is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount Te along with applicable interest shall, during every tax period of the useful life of the concerned capital goods, be added to the output tax liability of the person making such claim of credit.
(2) The amount Te shall be computed separately for central tax, State tax, Union territory tax and integrated tax.
- X X X X Extracts X X X X X X X X Extracts X X X X
|
