Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

REVERSAL IN ITC IN GST REGIME, Goods and Services Tax - GST

Issue Id: - 114366
Dated: 30-11-2018
By:- J SHAH

REVERSAL IN ITC IN GST REGIME


  • Contents

Respected Sirs,

My Client are providing Transportation/Vehicle (Trailer) hire Service. Some Trailers are used for Taxable Supplies, Some Trailers are provided to GTA (which was Exempted as GTA to GTA Transacction),Some Trailers are provided to SEZ Developer (Supply to SEZ without payment of Tax by filling of LUT).

My query is in above case, how to reverse the ITC Creditwhich was fully taken generally on Spare Parts, Repairs, Manpower (Drivers) and on vehicle itself, as it was run for Taxable,Exempted and also in NIL Rated Supply

kindly guide on the same

Thanks

Posts / Replies

Showing Replies 1 to 4 of 4 Records

Page: 1


1 Dated: 1-12-2018
By:- DR.MARIAPPAN GOVINDARAJAN

There is a formula for this calculation in the rules.


2 Dated: 1-12-2018
By:- J SHAH

But what about credit already taken on capital goods?

It may happen in future, after completing work order of SEZ or exempted work, vehicle will be used for taxable work.

In this case, what to do with ITC already taken on Capital Goods?


3 Dated: 1-12-2018
By:- KASTURI SETHI

No reversal is required for supply to SEZ unit. For remaining portion of reversal, formula has to be deeply studied as advised by Dr. Govindarajan, Sir.


4 Dated: 13-12-2018
By:- Ganeshan Kalyani

The common credit on capital goods to be taken on proportionate to taxable output. It is done based on turnover ratio. The common credit has to be taken over a period of 5 years assuming the life of an asset to be of five years.


Page: 1

Old Query - New Comments are closed.

Quick Updates:Latest Updates