Common Credit Solution

STEP 0: Pre-Calculation Summary
Formula Used
Common Credit = Total Eligible Credit-Normal Input Tax Credit
CC = TEC-NITC
This formula uses 3 Variables
Variables Used
Common Credit - Common Credit refers to the input tax credit that is available to a taxpayer for goods or services that are used for both taxable and exempt supplies.
Total Eligible Credit - Total Eligible Credit refers to the maximum amount of credit or funds that a person or entity is qualified to receive based on certain criteria.
Normal Input Tax Credit - Normal Input Tax Credit refers to the credit that registered businesses can claim for the GST they have paid on their purchases or inputs used for their business activities.
STEP 1: Convert Input(s) to Base Unit
Total Eligible Credit: 7920 --> No Conversion Required
Normal Input Tax Credit: 230 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CC = TEC-NITC --> 7920-230
Evaluating ... ...
CC = 7690
STEP 3: Convert Result to Output's Unit
7690 --> No Conversion Required
FINAL ANSWER
7690 <-- Common Credit
(Calculation completed in 00.020 seconds)
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Credits

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Created by Aashna
IGNOU (IGNOU), India
Aashna has created this Calculator and 100+ more calculators!
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Verified by Surjojoti Som
Rashtreeya Vidyalaya College of Engineering (RVCE), Bangalore
Surjojoti Som has verified this Calculator and 10+ more calculators!

14 Tax Calculators

Taxable Income for Corporation
​ Go Taxable Income for Corporation = Gross Sales-Cost of Goods Sold-Operating Expense-ceil(Interest Expense)-Tax Deduction
Maximum Refund Amount
​ Go Maximum Refund Amount = (Turnover of Inverted Rate Supply*Net Itc/Adjusted Total Turnover)-Tax Payable on Inverted Rate Supply of Gst
Total Eligible Credit
​ Go Total Eligible Credit = Total Itc-(Itc for Personal Expenses+Itc for Exempted Supplies+Non Eligible Itc)
Taxable Income for Individual
​ Go Taxable Income for Individual = Gross Total Income-ceil(Total Exemptions)-Total Deductions
GST Excluding Amount
​ Go Gst Excluding Amount = floor(Gst Including Amount)/(1+Goods and Service Tax Rate/100)
Partly Exempted
​ Go Partly Exempted = (Exempted Turnover/Total Turnover)*Common Credit
Retail Price
​ Go Retail Price = round(Price/(1+Percent),2)
Goods and Service Tax
​ Go Goods and Service Tax = Taxable Amount*Goods and Service Tax Rate
Common Credit
​ Go Common Credit = Total Eligible Credit-Normal Input Tax Credit
Sales Tax Amount
​ Go Sales Tax Amount = Price*(Sales Tax Percentage/100)
Tax Equivalent Yield
​ Go Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate)
Effective Tax Rate
​ Go Effective Tax Rate = Tax Expense/Pre Tax Income
Total Sales Tax
​ Go Total Sales Tax = Price+Sales Tax Amount
Net Price
​ Go Net Price = Cost of Product+Gst Amount

Common Credit Formula

Common Credit = Total Eligible Credit-Normal Input Tax Credit
CC = TEC-NITC

What is Common Credit ?

Common Credit is the aggregate input tax credit offered on all such purchases. ITC is a mechanism under GST that allows businesses to claim credit for the GST they have paid on their purchases or inputs. This credit can be offset against the GST liability on taxable supplies made by the business. When goods or services are used for both taxable and exempt supplies, businesses are allowed to claim a proportion of the input tax credit corresponding to the portion used for taxable supplies. This proportionate credit is termed as "common credit."Businesses must calculate the common credit based on a reasonable method that accurately reflects the proportion of inputs used for taxable supplies. This calculation method should be fair and based on the actual usage of inputs in taxable and exempt supplies. Businesses need to maintain records and documentation to support their claim for common credit, demonstrating the basis and methodology used for apportionment.

How to Calculate Common Credit?

Common Credit calculator uses Common Credit = Total Eligible Credit-Normal Input Tax Credit to calculate the Common Credit, Common Credit is the input tax credit amount that cannot be attributable to a specific supply but is used for partly making both the taxable and non-taxable supplies/supplies used for personal consumption. Common Credit is denoted by CC symbol.

How to calculate Common Credit using this online calculator? To use this online calculator for Common Credit, enter Total Eligible Credit (TEC) & Normal Input Tax Credit (NITC) and hit the calculate button. Here is how the Common Credit calculation can be explained with given input values -> 7690 = 7920-230.

FAQ

What is Common Credit?
Common Credit is the input tax credit amount that cannot be attributable to a specific supply but is used for partly making both the taxable and non-taxable supplies/supplies used for personal consumption and is represented as CC = TEC-NITC or Common Credit = Total Eligible Credit-Normal Input Tax Credit. Total Eligible Credit refers to the maximum amount of credit or funds that a person or entity is qualified to receive based on certain criteria & Normal Input Tax Credit refers to the credit that registered businesses can claim for the GST they have paid on their purchases or inputs used for their business activities.
How to calculate Common Credit?
Common Credit is the input tax credit amount that cannot be attributable to a specific supply but is used for partly making both the taxable and non-taxable supplies/supplies used for personal consumption is calculated using Common Credit = Total Eligible Credit-Normal Input Tax Credit. To calculate Common Credit, you need Total Eligible Credit (TEC) & Normal Input Tax Credit (NITC). With our tool, you need to enter the respective value for Total Eligible Credit & Normal Input Tax Credit and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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