ITC Rules – Manner of Reversal- Illustration
|
Terms used in Rule |
Particulars |
Amount |
|
T |
Total Input Tax of Input and Input Services |
500.00 |
|
T1 |
ITC for Non Business |
100.00 |
|
T2 |
ITC for Exempt Supply |
50.00 |
|
T3 |
ITC of Blocked Credits (Inputs Only) |
25.00 |
|
C1 = T-(T1+T2+T3) |
Valid ITC in ECL |
325.00 |
|
T4 |
ITC for Taxable Supply |
200.00 |
|
C2= C1-T4 |
Common ITC |
125.00 |
|
E |
Value of Exempt Supplies |
2000.00 |
|
F |
Aggregate Turnover |
5000.00 |
|
D1= E/F*C2 |
Value of ITC for Exempt Supply (From Common ITC) |
50.00 |
|
D2= C2*5% |
Value of ITC for Non Business Purpose ( From Common ITC) |
6.25 |
|
C3= C2-(D1+D2) |
Eligible ITC from Common ITC |
68.75 |
|
T4+C3 |
Total Eligible ITC for Use |
268.75 |