TaxTMI 
TaxTMI 
Input Tax Credit eligibility should be assessed per transaction to trigger deeming of invoice value under valuation rules.
Interpretation of eligible for full Input Tax Credit (ITC) in the provisos to Rule 28 turns on whether eligibility is assessed per transaction or for the recipient overall. Rule 28 sets valuation methods between related persons and includes provisos deeming invoice value as market or guarantee value where the recipient is eligible for full ITC. Given that ITC entitlement and reversal rules operate transactionally and Rule 28 addresses valuation by transaction, the provisos should be read to require transaction-level ITC eligibility for the deeming provision to apply, and administrative clarification is desirable. (AI Summary)
Interpretation of eligible for full Input Tax Credit (ITC) in the provisos to Rule 28 turns on whether eligibility is assessed per transaction or for the recipient overall. Rule 28 sets valuation methods between related persons and includes provisos deeming invoice value as market or guarantee value where the recipient is eligible for full ITC. Given that ITC entitlement and reversal rules operate transactionally and Rule 28 addresses valuation by transaction, the provisos should be read to require transaction-level ITC eligibility for the deeming provision to apply, and administrative clarification is desirable. (AI Summary)
11 Nov 2024 
