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CMA Final · Indirect Tax Laws and Practice · Input Tax Credit

Rule 39 defines the 'relevant period' for turnover-based distribution. If some of the recipients of credit had no turnover in their States in the preceding financial year, what is the relevant period?

The relevant period is the last quarter for which turnover details of all the recipients are available, before the month in which credit is distributed. The preceding financial year applies only where the recipients have turnover in their States in that year.

  1. AThe preceding financial year, treating the turnover of the others only
  2. BThe current financial year up to the date of distribution
  3. CThe last quarter for which turnover details of all recipients are available, before the month of distributionCorrect
  4. DThe preceding calendar month

Explanation

Explanation clause (i)(b) states that if some or all recipients have no turnover in the preceding financial year, the relevant period is the last quarter for which the details of all recipients' turnover are available before the month of distribution. The preceding financial year applies only when all recipients have turnover in it.

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