Jayanta Bandyopadhyay (310 Points)
25 May 2022Often PO terms state a part of payment eg retention portion be released after a year. Then can we take full ITC or proportionate to payments released
Please guide wrt domestic and foreign PO.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 25 May 2022
Even if the PO terms contain that payment can be done after 180 days still you will have to reverse your ITC and then reclaim it once payment made.
Jayanta Bandyopadhyay
(310 Points)
Replied 25 May 2022
Thanks. Knowingly , when PO itself is clear about payment terms, is it lawful to take 100% ITC initially ? Rationally, one should take proportionate credit only.
About interest, what rate and from when, it will accrue.
What is difference between commercial credit note and other credit note?
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 25 May 2022
Yes it is totally legal to take 100% ITC if conditions of section 16(2) fulfilled even if payment is made later.
CAclubindia
