Dear Sir,
One of my client has ITC balance of ₹ 27,00,000/- . Export sales of ₹ 1,06,000/- and total adjusted turnover for the respective period is ₹ 33,00,000/-.
For the above, i have calculated refund of ₹ 86000/- as per the below formula
ITC * Export Turnover / Total turnover
Now, my doubt is, can i claim ITC of ₹ 86,000 on the Export sales of ₹ 1,06,000/- or should I reduce ITC pertaining to closing stock from this formula.
Client Queries ITC Refund of 86,000 Amid Formula Confusion; Respondent Highlights Potential Error in Figures A client with an Input Tax Credit (ITC) balance of 27,00,000 and export sales of 1,06,000 questions whether they can claim an ITC refund of 86,000 based on a specific formula. The formula used is ITC multiplied by export turnover divided by total turnover of 33,00,000. The respondent advises that there might be an error in the figures or question and clarifies that the refund process is not linked to closing stock ITC. The refund amount should be debited to the Electronic Credit Ledger automatically upon filing the refund application. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
