Input tax credit matching triggers reversal and output liability additions where supplier returns mismatch, with interest and reclaim rules. Input tax credit claims are accepted where recipient details match supplier returns or import tax payments; discrepancies or duplicate claims are ... Summary
Input tax credit matching triggers reversal and output liability additions where supplier returns mismatch, with interest and reclaim rules.
Input tax credit claims are accepted where recipient details match supplier returns or import tax payments; discrepancies or duplicate claims are communicated. Unrectified discrepancies are added to the recipient's output tax liability in the subsequent return and duplicate credits are added in the month of communication. Added amounts attract interest from the date of availing credit until addition. If supplier later corrects returns within the prescribed time, the recipient may reduce the added liability and obtain interest credit limited to interest paid by the supplier; improper reductions are re-added with higher interest.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
Join Channel
TaxTMI 
