Amendment status not verified — confirm the current text below against the official source.
(l) Where the goods or services or both ore used by the registered person portly for the purpose of ony business ond portly for other purposes, the omount of credit sholl be restriaed to so much of the input tox os is ottributoble to the purposes of his business. Apportion- ment of creodit ond blocked credits. 43 of l96l . t20 (o) he is in possession of o tox invoice or debit note issued by o supplier registered under thisAct. or such other tox poying documents os moy be prescribed; (b) he hos received the goods or services or both. Etplonotion.- For the purposes of this clouse, it sholl be deemed thot fre registered person hos received tfre goods where tre goods ore delivered by the supplier to o recipient or ony other person on the direction of such registered person, whether oding os on ogent or otherwise, before or during movement ofqoods, either by woy of tronsfer ol documents oI title to goods or otherwise; (c) subiect to the provisions of section 41, the tox chorged in respect oI such supply hos been octuolly poid to the Government, either in cosh or through utilisotion of input tox credit odmissible in respect of the soid supply; ond (d) he hos furnished the return under section 39: Provicieci thot whei; ,he .:oods ogoinst on invcice ore,,,:.,.;.-.C irrots or instoimexts, ihe reEisl. !i-J iier-. Dn sholl be entitled to toii,, i'..j,t Jpon receipt :l the :ost ict !. i '-'. ne!:l: Provideci further rnot *here o recipient foils to poy to the eupplier of goods or services or Drr, oiher thon the supplies on whicn tox is poyoble on reverse chorge bosis, the omount towords the volue of supply olong witlt tox poyoble thereon within o period of one hundred ond eighty I t9 (v) one of them directly or indirecdy conkols the other; (vi) both of them ore directly or indirecdy conrolled by o hhd pefson; (vii) together they directly or indirectly control o third person; or (viii) they ore members of the some fomily; (b) the term 'person' olso includes legol persons. (c) persons who ore ossocioted in dre business of one onother in thot one is the sole ogent or sole disfibutor or sole concessionoire, howsoever described, oftre other, sholl be deemed to be reloted. CHAPTER - V INPUTTAX CREDIT r6. (r) (2) Every registered person sholl, subiect to such conditions ond restrictions os moy be prescribed ond in the monner specified in section 49, be entitled to toke credit of input tox chorged on ony supply of goods or sewices or boltt to him which ore used or intended to be used in the course or furtheronce of his business ond the soid omount sholl be credited to the elecronic credit ledger of such person. Notwithstonding onything con- toined in this section, no regis- tered person sholl be entitled to the credit of qny inpul tox in re- sped of ony supply of goods or services or both to him unless,- Eligibility ond conditionsfor toking input tox credit. I l8 (ii) input tox credit os is ottributoble to the discount on the bosis of document issued by tle supplier hos been rwersed by the recipient of the supply. (4) Where the volue of the supply of goods or servkes or both connot be determined under sub,section (l ), the some sholl be determined in such monner os moy be prescribed. (5) Notwithstonding onything contoined in sub-section (l) or sub-section (4), the volue of such supplies os moy be notified by the Government on the recommen- dotions of the Council sholl be determined in such monner os moy be prescribed. Explonotion.- For the purposes of fris Act,- (o) persons sholl be deemed to be 'leloted persons" if - (i) such persons ore officers or directors of one onother 5 businesses; (ii) such persons ore legolly recognised portners in business; (iii) such persons ore employer ond employee; (iv) ony person directly or indirectly owns, controls or holds twenty-five per cent. or more of the outstonding voting stock or shores oI both of them; tt7 (c) incidentol expenses, including commission ond pocking, chorged by the supplier to the recipient of o su pply ond ony omount chorged lor onything done by the supplier in respect ofthe supply ol goods or services or both ot the time of, or before delivery of goods or supply of services; (d) interest or lote iee or penolty for deloyed poyment o, ony considerotion for ony supply; ond (e) subsidies directly linked to the price excluding subsidies provided by the Centrol Government ond Stote Govemmenb. Explanation.-F or the purposes of this sub-section, the omount of subsidy shollbe included in the volue of supply of fre supplier who receives the subsidy. (3) The volue of the supply sholl not include ony discount which is given- (o) before or ot the time of the supply if such discount hos been duly recorded in the invoice issued in respect of such supply; ond (b) ofter the supply hos been effeaed, if- (i) such discount is estobli- shed in terms of on ogreement entered into ot or before the time of such supply ond specif icolly linked to relevont invoices; ond ll6 tre bonk occount is ofter four working doys lrom the dote of chonge in the role of tox. Explonotion.-F or the purposes ofthis section, the dote of receipt of poyment"sholl be the dote on which the poyment is entered in the books of occount ofthe supplier or the dote on which the poyment is credited to his bonkoccounl whichever is eorlier.