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Input tax credit

SUMIT BADYAL (709 Points)

01 August 2020

we take an input tax credit on the proforma invoice what should we do now...

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5 Replies

pasala arjun (CA) (47 Points)
Replied 01 August 2020

U can raise a debit note by mentioning the details of the proforma invoice by treating the proforma as the taxable invoice

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SUMIT BADYAL (709 Points)
Replied 01 August 2020

Actually, we take an input tax credit on the proforma invoice which is given in June, and the bill comes in July

pasala arjun (CA) (47 Points)
Replied 01 August 2020

Raise a debit note for the proforma as said above and again take the input on the original tax invoice

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 01 August 2020

Mr Sumit, it appears that there has been an early availment of credit. Credit of July has been availed in June and hence the company may have an exposure of interest for 1 month. No action is required. You may decided to pay interest now or wait for the department to demand. Further, if the company has excess ITC, then the interest also would not arise.

Rajarajan. K.S (Employee) (44 Points)
Replied 04 August 2020

Sir, anything you pay against Profoma is treated as advance payment. book your expenses and input against original tax bill.. it may also be easy for you to check in future.