Treatment of ITC on capital goods when the supplier is supplying exclusively taxable goods. whether Rule 43 be applicable if yes then whether we can take full credit at once or to take proportionate credit in 60 months (1/60 ) ? how will it be availed and reversed if required
ANIL KUMAR Asked question October 2, 2020
You avail full ITC immediately. If capital goods are used for taxable supplies, no need for any reversal. Reversal arises in case used partly for taxable and partly for exempt supplies.
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Frah Saeed Changed status to publish October 3, 2020