Home GST ITC allowed in case of sale and buyback transactions where payment is settled through book adjustment [Read AAR]

ITC allowed in case of sale and buyback transactions where payment is settled through book adjustment [Read AAR]

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ITC allowed in case of sale and buyback transactions where payment is settled through book adjustment [Read AAR]

ITC allowed in case of sale and buyback transactions the place cost is settled by way of ebook adjustment [Read AAR]

The West Bengal Authority for Advance Ruling (AAR West Bengal) within the matter of PARAGON POLYMER PRODUCTS PVT LTD has dominated out that ITC is allowed in case of sale and buyback transactions the place cost is settled by way of ebook adjustment.

The applicant is said to be engaged within the enterprise of buying and selling of footwear within the state of West Bengal within the model title of ‘Paragon’. The applicant intends to fabricate footwear by way of impartial outsource items beneath the sale and buyback mannequin the place uncooked supplies for manufacturing will probably be offered by the applicant to the outsourced distributors and the applicant will purchase again the manufactured items from the stated distributors. The applicant expresses its willingness to settle these mutual money owed by way of ebook changes and the web dues by way of financial institution switch.

The Query and Ruling are as follows:

Query: Within the case of sale and buyback transactions, whether or not the enter tax credit score is admissible in respect of products bought from outsourced distributors when cost is settled by way of ebook adjustment towards the debt created on outward provides to those distributors?

RULING

Within the case of sale and buyback transactions, the enter tax credit score is admissible in respect of products bought from outsourced distributors, when cost is settled by way of ebook adjustment towards the debt created on outward provides to these distributors.

For Official Ruling Obtain PDF Given Under:

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