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All QuestionsCategory: GST ConsultancyQuestion on ITC-02A
Profile photo of Samba Siva Rao GadamsettySamba Siva Rao Gadamsetty asked 2 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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1 Answers
Profile photo of Consultease AdministratorConsultease Administrator answered 2 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.”