Samba Siva Rao Gadamsetty asked 4 years ago
Question on ITC-02A
Is the Form ITC-02A can be filed only once for any new vertical or it can be filed monthly for transfer of ITC….. Elaborating the question for example Vertical A was existing and Vertical B was newly incorporated, there can be a case that existing vertical will always end up with excess ITC and vertical B will always end up with Tax liability. Can I file every month ITC-02A every month for transfer of credit from vertical A to Vertical B
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ConsultEase Administrator answered 4 years ago
It should be filed once. There is a time limit of 30 days from the registration of the new entity.Also the ITC can only be transferred in the ratio of assets held by the newly registered entity.
“Provided that the input tax credit shall be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration.
Explanation.- For the purposes of this sub-rule, it is hereby clarified that the ‗value of assets‘ means the value of the entire assets of the business whether or not input tax credit has been availed thereon.”
