input tax

 

“Bill to ship” scenarios also included.

Tax is actually paid by the supplier.

He has furnished the Return.

If the inputs are received in lots or installments, he would be eligible to avail the  only when the last lot or installment is received.

The payment should be made within 180 days from the date of issue of invoice. He shall also be entitled to take credit on capital goods used exclusively for such exempt supply.

In case of change of constitution of a registered person on account of sale, merger,  etc. The details of  paid on Reverse Charge Basis would be manually required to be furnished in the 

He is in possession of Tax Invoice or any other specified tax paid document.

He has received the goods or services. Bill of entry in the non locations would be digitized and used for validation of input tax credit provided by the  portal.

Other Relevant Points regarding Input Tax Credit

Input Tax Credit can be availed by a registered person only if all the applicable particulars as prescribed in the Invoice Rules are mentioned in the Invoice.

If the tax paid on inputs is more than the tax paid on output, the  can either be carried forward or claimed as refund.

The balance tax after claiming the input tax credit shall be deposited with the govt by the 20th of the next month.

Claiming of  would not be allowed beyond September of the following Financial Year to which the invoice pertains or the date of filing of Annual Return whichever is earlier.

A person who has applied for  Registration within 30 days of becoming liable for Registration is entitled to claim  in respect of goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax.

A person switching over to the normal scheme from the composition scheme under Section 10 is entitled to  in respect of goods held in stock and capital goods on the day immediately preceding the day from which he becomes liable to pay tax as a normal taxpayer.

Where an exempt supply of goods or services or both becomes taxable, the person making such supplies shall be entitled to take  in respect of goods held in stock relatable to exempt supplies. In case part payment has been made, proportionate credit would be allowed Documents on.

Document issued by the Input Service allowed only for Goods and/or Services used for Business

Input Tax Credit is not allowed for Goods and Services used for Personal Use.

When Goods and/or Services are received partly for Business and partly for personal use, one can avail but only for the portion which is used for Business.

When goods and/or services are used partly for taxable supplies and partly for exempt supplies, one can avail only on the portion used for making taxable supplies and zero rated supplies.

is not allowed on the portion used for making exempt supplies.Input Tax Credit in case of Imports

Indirect Taxes are basically the taxes which are not directly levied on the Income of an Individual but is indirectly levied on the Expense incurred by the Individual. This tax is basically levied on the seller of goods or the provider of service but in most cases, he passes it on to the end consumer and therefore, it is the end consumer who bears this in the form of an indirect tax.

In other words, Indirect Tax is levied on the person who is making the sale but he can recover the same from the buyer. In some cases, the Indirect Tax portion is specifically mentioned in the invoice whereas in other cases – the portion of indirect tax is automatically included in the transaction value and not disclosed separately.

It is pertinent to note here that the Govt also provides Rebate under Section  for taxpayers having low Income. This rebate has been increased from Rs. 2,500 p.a. to Rs. 12,500 p.a. in the Budget 2019. Moreover, this Rebate is only available only to Resident Individuals whose Total Income does not exceed Rs. 5,00,000.

Surcharge is levied on Income Tax and is levied if Income is more than Rs. 50 in case of Individuals and Rs. 1 Crores in case of Companies. Different rates of surcharge are applicable for different categories of taxpayers and the current rates of Surcharge are as follows:-

Tax Saving Fixed Deposit

Tax Saving Mutual Funds

Senior Citizen Savings Scheme

National Savings Certificate

Contribution to National Pension Scheme

Contribution to Pension Funds

Payment of Medical Insurance Premium

Payment for treatment of specified disease

The taxes collected by the Indian Govt can broadly be defined into 2 categories – Direct and Indirect. The Direct Taxes are basically the taxes which are directly levied on the Income of an Individual. Some examples of Direct Taxes are Income Tax, Surcharge, Gift Tax etc. The Direct Taxes in India are implemented by Central Board of Direct Taxes.