Input Tax Credit refund formula for inverted duties and enforcement powers to ensure passing on tax benefits to recipients. Rule 89 (effective 1 July 2017) prescribes the maximum refundable amount for input tax credit accumulated due to an inverted duty structure by the formula: Maximum Refund Amount = (Turnover of inverted rated supplies x Net ITC / Adjusted Total Turnover) - tax payable on such supplies, and defines Net ITC and Adjusted Total Turnover. Rule 133 empowers the Authority to order price reductions, refund with interest at eighteen percent, deposit fifty percent of determined amounts into the Fund, impose penalties, and cancel registration where benefits of rate reductions or input tax credit are not passed on.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input Tax Credit refund formula for inverted duties and enforcement powers to ensure passing on tax benefits to recipients.
Rule 89 (effective 1 July 2017) prescribes the maximum refundable amount for input tax credit accumulated due to an inverted duty structure by the formula: Maximum Refund Amount = (Turnover of inverted rated supplies x Net ITC / Adjusted Total Turnover) - tax payable on such supplies, and defines Net ITC and Adjusted Total Turnover. Rule 133 empowers the Authority to order price reductions, refund with interest at eighteen percent, deposit fifty percent of determined amounts into the Fund, impose penalties, and cancel registration where benefits of rate reductions or input tax credit are not passed on.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
