https://www.taxtmi.com/forum/issue?id=110811 Proportional reversal of input tax credit on capital goods was contested where the manufacturer's capital goods were used exclusively to produce taxable goods but sales included interstate transactions. The tax authority invoked interstate-sale provisions to reverse credit; the dealer asserted those provisions do not apply because no exempt goods were produced and capital goods credit is allocated across years. A subsequent amendment omitted the invoked provisions, but the transactions predated that amendment; commentators advise challenging the reversal by relying on the rule limiting reversal to capital goods used for exempt goods and on allocation rules for capital goods credit. en-us Thu, 18 Aug 2016 23:47:22 +0530 Thu, 23 Jan 2025 15:56:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=110811 Proportional reversal of input tax credit on capital goods was contested where the manufacturer's capital goods were used exclusively to produce taxable goods but sales included interstate transactions. The tax authority invoked interstate-sale provisions to reverse credit; the dealer asserted those provisions do not apply because no exempt goods were produced and capital goods credit is allocated across years. A subsequent amendment omitted the invoked provisions, but the transactions predated that amendment; commentators advise challenging the reversal by relying on the rule limiting reversal to capital goods used for exempt goods and on allocation rules for capital goods credit. Discussion-Forum VAT / Sales Tax Thu, 18 Aug 2016 23:47:22 +0530 https://www.taxtmi.com/forum/issue?id=110811