Applicant Can Claim Proportional Input Tax Credit for License Fee Recovery on Leasing Services Under CGST Act.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Admissibility of input tax credit - inward supply of services by way of License Fee Recovery (LFR) on leasing of pumps along with the equipment - The AAR concluded that the applicant, engaged in both taxable and exempt supplies, could only claim proportionate ITC based on taxable supplies. - The Authority ruled that the applicant could claim only proportionate ITC for leasing services based on taxable supplies, as per CGST Act provisions and rules.....