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Indirect Taxation

In total credit we eliminate T1,T2(exempt supplies),T3 and we will get common credit Then we eliminate D1 credit attributable to exempt supplies Why are eliminate exempt supplies again in D1 ?

Swathi Krishna

CA Final

★ 8K+

11-Jun-20 00:36

369

Answers (5)

We are transferring C1 (T-)T1+T2+T3)) to electronic credit ledger, only credit attributable to Taxable supplies (T4) will be allowed as credit. So, C2=C1-T4 (Common Credit) in which exmpte related portion which we taken earlier has to revered under D2 for 60 months.

KEERTHI PRIYA

CA Inter

★ 695

11-Jun-20 14:25

So what is the difference between T2 and D1

Thread Starter

Swathi Krishna

CA Final

★ 8K+

11-Jun-20 21:53

Thread Starter

Swathi Krishna

So what is the difference between T2 and D1

T2 is solely exempted supply, but D1 is portion of exempted supply in common credit which has to be transferred to electronic liability ledger for 60 months.

KEERTHI PRIYA

CA Inter

★ 695

11-Jun-20 23:48

Can u give example ?

Thread Starter

Swathi Krishna

CA Final

★ 8K+

11-Jun-20 23:50

Thread Starter

Swathi Krishna

So what is the difference between T2 and D1

If Input on X (Exempted)-T2=12000 and Turnover-200000 Input on Taxable-T4=140,000, Turnover=1000000 Input on Z=15000, Total =167000, Common credit =T-(T1+T2+T3+T4)=167000-12000-140000=15000 then D1=15000X200000/1000000=3000 reversed for 60 months. (3000/60)=50/- per month.

KEERTHI PRIYA

CA Inter

★ 695

12-Jun-20 15:24