ITC for FY 2017-18

[Sachin Jain]

Dear Experts,

A company is receiving Management services from its foreign entity without consideration. They have now decided to charge the services w.e.f 1 July 2017. Since it is import of services, the indian entity will be raising a self invoice as per Section 31(3)(f) in March 2019 for the period July 17 to March 18 and will pay the relevant interest.

As per Section 16(4), A registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier

The question is, since the self invoice pertains to FY 2018-19, can the company claim ITC os such services or will the due date be considered as March 2019 (for FY 2017-18) ?

[KASTURI SETHI]

In my view, ITC can be claimed till 20.4.19, the last date of filing return for March, 19.

AI Summary

Input tax credit deadline under Section 16(4) can extend until the final return filing deadline, permitting claim. Whether ITC is claimable for imported management services for July 2017-March 2018 where a self-invoice was issued in March 2019; Section 16(4) restricts ITC claims after the return filing deadline for September following the financial year or after the annual return, whichever is earlier. The advisory opinion concludes that ITC can be claimed up to the final filing deadline for the return including March.