Question ID :
39270
ITC reversal in Tour & Travel industry
This query is regarding ITC reversal in case of a company engaged in Tour & Travel industry.
Suppose there is total turnover of Rs 10L in a month:-
1. Rs 6L is 5% sale (package sale).
2. Rs 4L is 18% sale (commission Income).
There is total ITC of Rs 1L in that month which is as follows:
1. ITC directly related to commission Income is Rs 40,000.
2. ITC related to Package sale is Rs 30,000.
3. Common ITC is Rs 30,000.
So, the total ITC reversal is as follows:
1. Rs 30,000 ( being amount directly related to supply on which ITC cannot be taken)
2. Rs 18,000 ( Rs 30,000* Rs6L/Rs 10L)
Kindly confirm the same.
posted by
CA Neha Gupta
on
Jul 4 2019 12:00AM