Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

April 2022

BLOCKED CREDITS

By Sunil Gabhawalla | Rishabh Singhvi | Parth Shah
Chartered Accountants
Reading Time 34 mins
The previous articles discussed the various restrictions imposed u/s 17 (5) on input tax credit claims. In this concluding article on blocked credits, we will discuss clauses (b) and (g) of Section 17 (5).

INTRODUCTION
The erstwhile CENVAT Credit Rules, 2004 permitted the claim of credit of tax paid on inputs, input services or capital goods. An inward supply was required to fall within the purview of the said terms, as defined u/r 2 thereof. The definition of inputs and input services provided therein specifically excluded the following goods/ services from being classified as inputs/ input services:

You May Also Like

On maturity of life insurance policy, where section 10(10D) does not apply, it is only net income which is chargeable to tax

For the purpose of section 54, it is the date of possession which should be taken as the date of purchase and not the date of registration of agreement for sale