Person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person he can avail ITC and if so from what date :
A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Ans. He can avail ITC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods (reduced by prescribed percentage points) on the day immediately preceding the date from which he ceases to be eligible for composition scheme. The manner of calculation of eligible credit would be provided by rules.
Latest posts by Rishi Banshal (see all)
- The principle of unjust enrichment would be applicable in all cases of refund - April 26, 2017
- The time limit for taking refund - April 24, 2017
- Supplies to the Embassies or UN bodies will be taxed - April 24, 2017