Clarification related to Rule 43

[Rajesh Kumar]

Respected sir/ madam,

Please inform as per the provisions of Rule 42, the proportionate reversal of ITC to be done on monthly basis and at the end of the financial year , yearly calculation also to be done. Accordingly, ITC reversal or re credit can be done.

Is there any provision under Rule 43 for yearly calculation also Or only monthly calculation proposed?

[Shilpi Jain]

Rule 43 only monthly calculation and reversal.

No yearly re-calculations required.

AI Summary

Input tax credit reversal under Rule 43 requires only monthly calculation and reversal, not annual recalculation. Rule 43 requires the reversal and re crediting of input tax credit to be computed and effected monthly; it does not require a separate year end or annual recalculation of reversals under Rule 43.