alleryStart learning →Opting for composition after taking ITC, he must pay what?
ACredit on stock, capital goods
BOnly the interest on credit
CA flat penalty on all stock
DNothing; credit stays intact
Answer & Solution
Correct answer: A. Credit on stock, capital goods
Section 18(4) requires payment equal to the credit on inputs in stock and capital goods (reduced by prescribed percentage points) on the day before the option is exercised.
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