Question64:XYZ Ltd. receiving interest on 1) fixed deposit with the banks 2) loan given to group company. XYZ availing credit on common input services. Are they required to proportionately reverse the credit since the interest income is an exempted service as per Notfn.No.12/2017'

Answer The reversal will be required only for the input and input services those which are common and it will not apply to input or input services which are not common so you have to make a list of services which are common For example audit fees will be common but payment made to security is not common because it is not used for loan it is used for security of factory. (REPLY dt. 21/02/2018)