Whether Income from interest and Dividend from companies are considered as exempted supply for the purpose of reversal under rule 42?
Frah Saeed Changed status to publish June 8, 2020
Interest income is an exempt supply and will form part of the exempted supply determined for reversing ITC as per Rule 42. However dividend is nothing but share of profit and is not at all a supply and thus will not be included in exempt supply for computation of the ITC reversal.
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Frah Saeed Changed status to publish June 8, 2020