Common Credit Calculator

Financial Chemistry Engineering Health More >>

↳

Tax Banking Business Common Probability Distribution More >>

✖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.ⓘ Total Eligible Credit [TEC]			+10% -10%
✖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.ⓘ Normal Input Tax Credit [NITC]			+10% -10%

✖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.ⓘ Common Credit [CC]

⎘ Copy

👎

Formula

LaTeX

Reset

👍

Download Tax Formulas PDF PDF Image

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 00.004 seconds)

You are here -

Home » Financial » Tax » Common Credit

Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 100+ more calculators!

Verified by Surjojoti Som

Rashtreeya Vidyalaya College of Engineering (RVCE), Bangalore

Surjojoti Som has verified this Calculator and 10+ more calculators!

< Tax Calculators

Sales Tax Amount

LaTeX Go Sales Tax Amount = Price*(Sales Tax Percentage/100)

Tax Equivalent Yield

LaTeX Go Tax Equivalent Yield = Tax Free Yield/(1-Tax Rate)

Effective Tax Rate

LaTeX Go Effective Tax Rate = Tax Expense/Pre Tax Income

Total Sales Tax

LaTeX Go Total Sales Tax = Price+Sales Tax Amount

Common Credit Formula

LaTeX Go

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.

Home

FREE PDFs

🔍 Search