https://www.taxtmi.com/forum/issue?id=115266 Accounting and tax treatment of refunds for delayed possession hinges on classification: treat the payment either as a reduction of sale consideration (discount/credit) and net against receivables if legally agreed, or as compensation/penalty charged to expense with separate refund entries. GST applicability is disputed-one view invokes Schedule II(5)(e) to characterise certain forbearance or tolerance obligations as supply (potentially taxable), while another treats the payment as non-taxable compensation or as a discount. en-us Thu, 01 Aug 2019 00:42:36 +0530 Thu, 23 Jan 2025 15:55:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=115266 Accounting and tax treatment of refunds for delayed possession hinges on classification: treat the payment either as a reduction of sale consideration (discount/credit) and net against receivables if legally agreed, or as compensation/penalty charged to expense with separate refund entries. GST applicability is disputed-one view invokes Schedule II(5)(e) to characterise certain forbearance or tolerance obligations as supply (potentially taxable), while another treats the payment as non-taxable compensation or as a discount. Discussion-Forum Companies Law Thu, 01 Aug 2019 00:42:36 +0530 https://www.taxtmi.com/forum/issue?id=115266