Q. where to reverse itc for capital goods rule 43

Question

Sir

there is no itc in march ... now from where I reverse my itc of capital goods rule 43... pls suggest

thanks

Answer 1

Steps for Reversal:

Identify the Capital Goods: Identify the capital goods which are used for both taxable and exempt supplies or non-business purposes.

Calculate the ITC to be Reversed: Use the formula provided in Rule 43 to calculate the amount of ITC to be reversed for the month.

Make the Reversal: Add the calculated amount to your output tax liability for the month.

It's important to maintain proper records and documentation to support the calculation and reversal of ITC as per Rule 43. This will be crucial in case of any scrutiny or audit by the tax authorities.

Regards, CA. Praveen Sharma

www.linkedin.com/in/capraveensh

+91-9871530610