Sir/Madam..
“Common credit attributable to exempt supplies under rule 43 of CGST Rules, along with Applicable Interest shall be added to Output tax liability..”
My Question is:
1. What is the rate of interest applicable here?
2. How to calculate the amount of interest in this scenario( i.e, on which amount & for which period of days to be taken for calculation)?
Please explain calculation with some illustration..
Thank You..
Umakanth S Asked question July 12, 2020
- 18% p.a. would be the rate of intt applicable.
- As entire ITC of capital goods even if used for common purposes is given immediately i.e. in month of purchase and the ITC attributable to exempt supplies are to be reversed in total of 60 months, being the useful life. The interest shall accordingly be levied on the amount of each of the 60 reversals for the period from availing of credit till each reversal.
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Frah Saeed Changed status to publish July 12, 2020