Skip to content

CMA Intermediate · Direct and Indirect Taxation · Input Tax Credit

Which of the following is NOT listed in rule 36(1) as a document on the basis of which input tax credit can be availed?

A purchase order placed by the recipient is not a valid document for claiming credit. Rule 36(1) permits supplier invoices, reverse charge invoices on payment of tax, supplier debit notes, bills of entry for IGST on imports and ISD documents, but not the buyer's own purchase order.

  1. AA bill of entry for assessment of integrated tax on imports
  2. BA debit note issued by a supplier under section 34
  3. CAn Input Service Distributor invoice issued under rule 54(1)
  4. DA purchase order placed by the recipient on the supplierCorrect

Explanation

Rule 36(1) lists the supplier's invoice, an invoice under section 31(3)(f) subject to payment of tax, a supplier's debit note, a bill of entry, and ISD invoices or credit notes. A purchase order is the recipient's own document and is not a tax document, so it cannot support credit.

Did you get it right without looking?

One question tells you little. A timed set on Input Tax Credit shows your real accuracy, how long you take and where you lose marks.

Practise Input Tax CreditFree diagnostic mock

More Input Tax Credit questions