If the input is used partly for making taxable goods and partly for exempted goods, whether input tax credit will be available?
Where goods have been partly used for making the taxable sales (or inter-State sales) and partly for making exempt goods, the amount of the tax credit shall be reduced proportionately. To illustrate, X purchased machinery for Rs. 1,00,000/- plus tax of Rs. 12,500/- for manufacture of taxable as well as exempted goods. At that time, he estimated that the machinery would produce 80% taxable goods. In such case, his input tax credit will be restricted only to 80% of Rs. 12,500/- i.e., Rs.
Related Questions
- If the input is used partly for making taxable goods and partly for exempted goods, whether input tax credit will be available?
- If the Input is used partly for making taxable goods and partly for exempted goods, will input tax credit will be available?
- If the input is used partly for making taxable goods and partly for exempted goods, will input tax credit be available?
