Itc on advance
Abhishek Saurav (34 Points)
01 January 2019
I have paid 12 month AMC in advance and the supplier issued the invoice for the same , can I take itc on full value
8 Replies
pritesh
(CA Final student)
(7101 Points)
Replied 01 January 2019
No you have to take iTC Month by month
pritesh
(CA Final student)
(7101 Points)
Replied 01 January 2019
Normally, ITC is taken on basis of ‘Electronic Credit Ledger’. However, if advance
payment was made before receipt of goods and services, input tax credit cannot be
taken as goods and services are not received.
At the time of payment of GST on advance, the supplier of goods and services cannot
issue tax invoice. He has to issue only ‘receipt voucher’.
Input tax credit is available only if goods or services are received with invoice document.
payment was made before receipt of goods and services, input tax credit cannot be
taken as goods and services are not received.
At the time of payment of GST on advance, the supplier of goods and services cannot
issue tax invoice. He has to issue only ‘receipt voucher’.
Input tax credit is available only if goods or services are received with invoice document.
Jatin
(Accountant)
(3479 Points)
Replied 01 January 2019
You can take full ITC on Prepaid expense due to you already received invoice & made payment
@ Pritesh Ji,
If some one paid prepaid expenses for 5 years on franchisee fee to Franchisor & recd invoice & payment done
Can he take ITC in single take
@ Pritesh Ji,
If some one paid prepaid expenses for 5 years on franchisee fee to Franchisor & recd invoice & payment done
Can he take ITC in single take
Ravi SADhiyan
(Practice)
(4510 Points)
Replied 01 January 2019
| Originally posted by : Jatin | ||
 |
You can take full ITC on Prepaid expense due to you already received invoice & made payment @ Pritesh Ji, If some one paid prepaid expenses for 5 years on franchisee fee to Franchisor & recd invoice & payment doneCan he take ITC in single take |  |
Dear Jatin
Mr. Pritesh G is right becuase in advance payment under gst Receipt voucher is issued intstead of Tax Invoice
And Dear this payment is not prepaid expenses
Prepaid exp, means an expenses which is related two F.Y. whether it is paid or not
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 02 January 2019
As per Section 13 CGST Act , the time of supply in case of services is ... earliest of following :
Date of invoice issued
Payment Reced .
Provision in books
& as per querist , he gots the invoice & the payment is also made by him. But... As per section 16 (2)(b) : he has reced. the goods or Services .
Hence in the case the querist has not received the services . so the supplier has to treat such payment as advance & Raise the Receipt Voucher as per Rule 50
Date of invoice issued
Payment Reced .
Provision in books
& as per querist , he gots the invoice & the payment is also made by him. But... As per section 16 (2)(b) : he has reced. the goods or Services .
Hence in the case the querist has not received the services . so the supplier has to treat such payment as advance & Raise the Receipt Voucher as per Rule 50
Jatin
(Accountant)
(3479 Points)
Replied 02 January 2019
Thank you Mr. Ravi & Pankaj,
Supplier already issued tax invoice with details of period for 01.07.17 to 30.06.22 & receipient already made payment, intend to use services for furtherance to business, why he can't take ITC in single take
Supplier already issued tax invoice with details of period for 01.07.17 to 30.06.22 & receipient already made payment, intend to use services for furtherance to business, why he can't take ITC in single take
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 02 January 2019
Dear Jatin
Section 16 CGST Act lays the Condition for ITC to be claim & one of the condition clause (b) says that the Input credit can be claim if the Recepient has reced the Goods & Services.
Now lets take an example : if suppose on 31/3/18 you got the invoice from mumbai supplier & your business place is delhi & Goods reced by you on 3/04/2018 , can you take the input of that invoice in march18 ??? No wont be ... As per gst return in GSTR 2 there is an option of pending button as you have click that button & the bill will be roll over to april month & there you can select the same & can claim ITC (in april18)
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