Sir/Madam.. Thanks for reply on Common Credit concept in earlier query..
Now my question is:
M/s. Janam Industries engaged in manufacture of taxable & exempt product. It has purchased machine on 1st january,2018 and till 31st December,2019 that machine has been used only for manufacture of Exempt product. from 1st january,2020 change in use from exclusively exempt to both taxable and exempt products.
Common credit attributable to exempt supplies u/r 43 for the month of:
January,2020 is Rs.3,300
February,2020 is Rs.3,800
March,2020 is Rs. 3,600
Now, My Query is:
1. Is there any interest to be added to output liabilty for the month of January,2020? If Yes,then What is the amount of interest?
2. If interest is applicable & interest has been paid for january,2020, then for the month of February,2020 interest period is only of february(one month) OR it is from january to February(2 months)
3.What is the amount of interest for the Month of February,2020 & March,2020.
Thank You
In our view NO, it being first month when assets migrated to common use and ITC towards the same will be availed only at month end.
Intt will be computed for Feb onwards of the amount of reversal made with intt thereon of one momth.
Intt to be computed at 18% p.a. on the amount of reversal.
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