alleryStart learning →Selling a machine on which ITC was taken needs what payment?
ATax on sale value only
BFull ITC with no cut
CLower of the two amounts
DHigher of reduced ITC or tax
Answer & Solution
Correct answer: D. Higher of reduced ITC or tax
Section 18(6) requires payment of the ITC taken reduced by prescribed percentage points or the tax on transaction value, whichever is higher.
Keep practising Input Tax Credit
Browse all Input Tax Credit questions for CA Final, or explore more Indirecttaxlaws topics.
Related questions
An Input Service Distributor is best described as what?Which return must be filed before claiming ITC under Section 16(2)(d)?ITC on a supply requires that the tax charged has been actually what?A bank has eligible ITC of Rs 80,000 in a month and picks the 50 per cent option. What creCommon input ITC Rs 90,000; two-thirds relates to taxable supplies, rest exempt. Credit alInputs carry total ITC of Rs 60,000, and 25 per cent of their use is for non-business purpInvoice Rs 1,00,000 plus 18% GST unpaid beyond 180 days. ITC added back, ignoring interestInter-State sale Rs 5,00,000, inputs Rs 3,00,000, IGST 12% on both. Net IGST?