Whether 180 days payment clause applicable if partner brought his assets as capital

[KARAN VERMA]

Sir, there are two private limited companies who want to make partnership firm in which one company brought cash as its capital and other company brought his assets as capital.

Now, that company transfer his assets to partnership firm in form of capital introduce by partner.And company charge GST on transfer of assets to partnership firm.

Now, question is whether such partnership is eligible to take input tax credit on purchase of such assets because no payment is made to company who sold such assets due to capital introduce by such partner.

AI Summary

Input tax credit: assets introduced as capital allow ITC if no payment obligation; timing rule applies when transfer is supply.
If the asset transfer is a true capital contribution there is no consideration or payment obligation and the partnership may retain input tax credit after making appropriate accounting entries; if instead the transfer is characterized as a deemed supply of business assets on ceasing a taxable activity, the conditions for availing ITC - including the payment-timing adjustment tied to failure to pay - will apply. Related-party characterization may further affect valuation and compliance treatment.